Why Are These Stocks Deep in Red Today?

The three major indexes are slightly in the green today after Federal Reserve Chairwoman Janet Yellen said that the institution would take a cautious approach to hiking rates.

Among the stocks deep in the red today are Medgenics Inc (NYSEMKT:MDGN), SCYNEXIS Inc (NASDAQ:SCYX), Canadian Pacific Railway Limited (USA) (NYSE:CP), Werner Enterprises, Inc. (NASDAQ:WERN), and Immunomedics, Inc. (NASDAQ:IMMU). Let’s find out why traders are selling and see what elite funds think of each stock.

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Medgenics and SCYNEXIS Down on Offering Pricing

Medgenics Inc (NYSEMKT:MDGN) shares are 13% lower today after the company priced its previously announced offering of 3.64 million shares of common stock at $5.50 per share. The company has granted underwriters a 30 day option to buy an additional 15% of shares of common stock offered to the public at the same price. Medgenics plans to use the net proceeds for product development activities, licensing and research collaborations and other general corporate purposes. Six funds from our database amassed $34.11 million worth of Medgenics Inc (NYSEMKT:MDGN)’s stock at the end of March, which accounted for 23.50% of the float on March 31, versus nine funds and $43.66 million, respectively, on December 31.

SCYNEXIS Inc (NASDAQ:SCYX) is 14% in the red after the company priced its public offering of 9.375 million shares of common stock and warrants to purchase 4,218,750 shares at $2.40 per share. The warrants have a five year term, are immediately exercisable upon issuance, and have an exercise price of $3 per share. SCYNEXIS has granted underwriters a 30-day option to buy another 1,406,250 shares of common stock and warrants to purchase up to 632,812 shares of common stock at the public offering price minus underwriting discounts and commissions. The number of funds from our database with holdings in SCYNEXIS Inc (NASDAQ:SCYX) fell by one quarter-over-quarter to eight at the end of March.

On the next page, we examine Canadian Pacific Railway Limited, Werner Enterprises, and Immunomedics.
Canadian Pacific Trims Guidance

Canadian Pacific Railway Limited (USA) (NYSE:CP)’s shares are off 2.5% after the railroad company warned its second-quarter revenues will decline by around 12% year-over-year, and that its adjusted EPS will be CAD 2.0 due to lower-than-anticipated volumes in bulk commodities as well as the negative effects of the devastating wildfires in northern Alberta. Analysts were expecting earnings of CAD 2.48 per share. At the end of March, 36 funds tracked by us had a long position in Canadian Pacific Railway Limited (USA) (NYSE:CP), up by seven funds from the previous quarter.

Werner Enterprises Guides Lower

Werner Enterprises, Inc. (NASDAQ:WERN) is another victim of soft guidance today, as shares of the trucking company have lost nearly 10%. Due to increasing wage pressures and sluggish freight market conditions, Werner anticipates earnings per share to be in the range of $0.21-$0.25, versus analyst estimates of $0.40 per share. The earnings could be lower on an adjusted basis due to a $3.4 million pre-tax gain on the sale of real estate. A total of 18e funds were long Werner Enterprises, Inc. (NASDAQ:WERN) at the end of the first quarter.

Immunomedics Sells Off on Technicals

Immunomedics, Inc. (NASDAQ:IMMU) shares have retreated by another 11% today after the stock sliced through and closed below several key moving averages in the preceding days. Some traders evidently bought the stock in anticipation of a good ASCO presentation, but those bulls were disappointed after ASCO kicked Immunomedics out for trying to present previously-presented data elsewhere. Immunomedics is also in the news for appointing Michael Garone as CFO. Nine funds tracked by us held stakes in Immunomedics, Inc. (NASDAQ:IMMU) at the end of the first quarter, down by two funds from the previous quarter.

Disclosure: none