Why Are These Five Stocks Sinking Today?

Page 1 of 2

The US stock market is trading slightly in the green territory amid positive news from China and following solid employment figures, but shares of American Eagle Outfitters (NYSE:AEO), Barracuda Networks Inc (NYSE:CUDA), Collegium Pharmaceutical Inc (NASDAQ:COLL), Kinross Gold Corporation (USA) (NYSE:KGC) and Barrick Gold Corporation (USA) (NYSE:ABX) are trading significantly lower than their yesterday’s closing prices. So let’s take a look at the news surrounding these stocks today and see the hedge fund sentiment towards them.

Let’s first take a step back and analyze how tracking hedge funds can help an everyday investor. Through our research, we discovered that a portfolio of the 15 most popular small-cap picks of hedge funds beat the S&P 500 Total Return Index by nearly a percentage point per month on average between 1999 and 2012. On the other hand the most popular large-cap picks of hedge funds underperformed the same index by seven basis points per month during the same period. This is likely a surprise to many investors, who think of small-caps as risky, unpredictable stocks and put more faith (and money) in large-cap stocks. In forward tests since August 2012 these top small-cap stocks beat the market by an impressive 53 percentage points, returning over 102% (read the details here). Follow the smart money into only their best investment ideas all while avoiding their high fees.

The first on the list is American Eagle Outfitters (NYSE:AEO), whose stock has plummeted by 15% after the company announced that fourth-quarter same-store sales rose by 4%, which is below the consensus estimate of 4.9%. Moreover, the retailer expects to report earnings per share between $0.40 and $0.42 for the fourth quarter, which is below the consensus estimate of $0.43. American Eagle Outfitters (NYSE:AEO) has gained popularity in the third quarter and, out of the 730 funds that we track, 40 funds held shares of the company on September 30, amassing 16.2% of the float. Chuck Royce’s Royce & Associates has the most valuable position in American Eagle Outfitters, worth $71.23 million at the end of September.

Follow American Eagle Outfitters Inc (NYSE:AEO)

Barracuda Networks Inc (NYSE:CUDA)’s shares are down by around 33% today on the back of the company reporting its financial results for the third quarter of fiscal 2016, ended November 30. The company posted adjusted EPS of $0.07, missing the estimates by $0.01, while its revenue of $80.1 million was higher than the $70.4 million figure reported a year earlier, but below the consensus estimate of $84.43 million. Following the results, the company was downgraded by six analysts, and other four lowered their price targets. Among the funds we follow, 14 reported long positions in Barracuda Networks Inc (NYSE:CUDA) as of the end of September, down by two funds from a quarter earlier. George McCabe‘s Portolan Capital Management reported holding 512,866 shares, worth $7.99 million, in its latest 13F filing.

Follow Barracuda Networks Inc (NYSE:CUDA)

Page 1 of 2