Why Is Endo International (ENDP) Stock Declining?

Miller Value Partners recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Opportunity Equity Fund posted a return of 47.02% for the quarter (net of fees), outperforming its benchmark, the S&P 500 Index which returned 20.54% in the same quarter. You should check out Miller Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.

In the said letter, Miller Value Partners highlighted a few stocks and Endo International Plc (NASDAQ:ENDP) is one of them. Endo International Plc (NASDAQ:ENDP) is a pharmaceutical company. Year-to-date, Endo International Plc (NASDAQ:ENDP) stock lost 33.7% and on July 24th it had a closing price of $3.30. Here is what Miller Value Partners’ said:

“Endo International (ENDP) fell -7.4% on continued concerns of opioid and price fixing liabilities. The company reported 1Q revenue of $820M ahead of consensus of $726M with EBITDA of $421M vs the Street at $319M, leading to EPS of $0.95 ahead of expectations of $0.55. The company withdrew full year guidance due to uncertainties around COVID and they have pushed back the launch of CCH for cellulite to 1Q21 from 4Q20 originally. The company expects revenue decline in the low 20’s percentage range for 2Q compared to 1Q with adjusted operating expenses at 25% of sales and gross margins of 60%. The stock fell further when the New York State Department of Financial Services alleged that Endo misrepresented the safety and efficacy of its opioid products which helped drive over-prescription of opioids.”

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In Q1 2020, the number of bullish hedge fund positions on Endo International Plc (NASDAQ:ENDP)  stock increased by about 29% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Endo International’s growth potential. Our calculations showed that Endo International Plc (NASDAQ:ENDP)  isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. Hedge fund sentiment towards Tesla reached its all time high at the end of 2019 and Tesla shares more than tripled this year. We are trying to identify other EV revolution winners, so we are checking out this under-the-radar lithium stock. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.