Why These 5 Nasdaq Stocks Are Tumbling Today

Wall Street has experienced mixed sentiment on Friday, following the release of disappointing April jobs data out of the U.S, which has created increased uncertainty around the health of the economy and the probability of a rate hike. Among the day’s largest decliners are El Pollo LoCo Holdings Inc (NASDAQ:LOCO), KemPharm Inc (NASDAQ:KMPH), Endo International plc – Ordinary Shares (NASDAQ:ENDP), FireEye Inc (NASDAQ:FEYE), and Scientific Games Corp (NASDAQ:SGMS), which are posting big losses in the afternoon hours. Let’s check out why these stocks are sliding today and see what the funds in our database think about these companies.

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El Pollo LoCo Tumbles on Disappointing Results

Shares of El Pollo LoCo Holdings Inc (NASDAQ:LOCO) are trading down by almost 13% on Friday afternoon following the announcement of the company’s first quarter financial results. After the market closed on Thursday, the restaurants operator posted EPS of $0.17 on revenue of $94.35 million, missing the Street’s consensus estimates by $0.01 and $2.44 million, respectively. While comps were slightly up, by 0.7% system-wide, restaurant contribution margin dropped by 160 basis points to 20.7%, driven by increased labor costs.

By the end of 2015, El Pollo LoCo Holdings Inc (NASDAQ:LOCO) was in the portfolios of seven hedge funds in our database. However, one of those shareholders, Andy Redleaf’s Whitebox Advisors, closed its stake during the first quarter, which had comprised 147,202 shares at the end of 2015.

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KemPharm Plummets on FDA Non-Recommendation

Next up is KemPharm Inc (NASDAQ:KMPH), a micro-cap clinical-stage specialty pharmaceutical company that is trading down by more than 55.7% this afternoon. The steep decline is due to the FDA advisory committee’s decision to not recommend the addition of abuse-deterrent labeling to the company’s Apadaz painkiller, after it recommended the drug for approval. The FDA’s action date (PDUFA) has been set for June 9, and while the recommendation is not binding, the agency tends to follow the advisory committee’s lead.

Much like El Pollo LoCo, KemPharm Inc (NASDAQ:KMPH) had 7 hedge fund backers in our database at the end of 2015. Their combined stakes accounted for more than 22% of the company’s total shares on December 31.

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Three more stocks that are sinking on the Nasdaq today are discussed on the next page.

Endo Falls on Weak Guidance

Another big decliner on Friday is Endo International plc – Ordinary Shares (NASDAQ:ENDP), which is down by more than 41% following the announcement of the company’s first quarter financial results. While EPS of $1.08 and revenue of $963.54 million, the latter of which was up by 34.9% year-over-year, beat estimates, lowered 2016 guidance overshadowed the previous quarter’s results. Management said that it now expects full-year non-GAAP EPS of $4.50-to-$4.80 on revenue of $3.87 billion-to-$4.03 billion, down from previous guidance of $5.85-to-$6.20 in EPS and $4.32 billion-to-$4.52 billion in revenue. Analysts were expecting EPS of around $5.69-to-$5.76 and revenue of $4.30 billion-to-$4.31 billion.

Among the funds that we track, 53 were long Endo International plc – Ordinary Shares (NASDAQ:ENDP) at the end of the fourth quarter, with their combined stakes accounting for more than 20% of the company’s float.

FireEye: Yet Another Stock Sinking on Disappointing Results

Also tumbling due to its first quarter financial results is FireEye Inc (NASDAQ:FEYE), which is down by more than 19% in trading today. After the bell rang on Thursday, the small-cap cybersecurity provider reported a net loss of $0.47 per share, $0.03 better than was the Street had expected. However, revenue, which was up by 34 percent year-over-year to $168 million, still missed expectations by $3.8 million. Guidance for second quarter revenue of $178 million-to-$185 million and a net loss of $0.38-to-$0.40 per share, also fell short of expectations. Nonetheless, the key element driving the stock down seemed to be that CEO Dave DeWalt announced he was stepping down from his position, which will be taken over by President Kevin Mandia. The company further announced a wider management reshuffle.

In the first quarter, Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners started a new stake in FireEye Inc (NASDAQ:FEYE) comprising 95,071 shares, worth roughly $1.7 million as of March 31.

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Scientific Games Plunges on Double-Miss

Finally, there’s Scientific Games Corp (NASDAQ:SGMS), which is down by more than 7.75% on Friday afternoon, driven by a top and bottom-line miss in its first quarter financial results. The company posted a net loss of $0.17 per share on revenue of $682 million, which missed expectations by $0.10 and $11.88 million, respectively.

Scientific Games Corp (NASDAQ:SGMS) counted 25 hedge fund supporters in our database, which held more than half of its float, at the end of the fourth quarter. A noteworthy position was that of Debra Fine’s Fine Capital Partners, which disclosed ownership of 8.36 million shares of the company as of December 31.

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Disclosure: Javier Hasse holds no positions in any of the securities mentioned in this article.