Why Are These Four Stocks Tanking Amid Today’s Rally?

Shares of Urban Outfitters, Inc. (NASDAQ:URBN) are also deep in the red today, after a disappointing earnings report. The apparel retail company has only managed to meet profit estimates, posting earnings of $0.42 per share. Revenues came in at $825 million, significantly lower than analysts’ estimates of $870 million. While investors are not pleased and are driving the stock lower, Urban Outfitters CEO Richard Hayne is trying to soothe them, pointing to the fact that margins and profits grew during the third quarter, despite “weaker customer traffic.”

Steven Cohen and Israel Englander have changed their minds about Urban Outfitters, Inc. (NASDAQ:URBN) during the third quarter and have taken drastic measure to reduce exposure to the stock. Cohen has dumped the entire position, having held 1.14 million shares at the end of June. Englander’s Millennium Management reported a 86% decrease in its holding to just 175,478 shares worth $5.15 million.

Sunedison Inc (NYSE:SUNE) has continued its slide this morning, fueled by news that major hedge funds have been reducing their holding of the stock. It traded as high as $33.45 in July, but got murdered in the August sell off, falling below the $4 level today. There seems to be no light at the end of the tunnel as Sunedison’s recent financial results have provided no comfort. The third quarter loss widened to $0.79 per share, while revenues registered a minor, 1.5% rise to $476 million.

A year ago Davin Einhord was a major supporter of Sunedison Inc (NYSE:SUNE) and was tipping the stock to reach $35 a share. Now, he’s decided it’s time to cut losses and has dumped a quarter of his stake during the third quarter. As reported in its latest 13F filing, Greenlight Capital now holds 18.6 million shares, down from 24.8 million shares reported at the end of June. Dan Loeb went even further than that and has liquidated his entire investment. At the end of June, his fund, Third Point, held 12.4 million shares.

Disclosure: none.