Sell Alert: 10 High-Profile Stocks Just Dumped by Top Analysts

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Wall Street had one of its roughest sessions of the year this week. The Nasdaq Composite fell 5.52% on November 5, its deepest one-day drop in 19 months, Reuters reported that day. The index closed more than 10% below its October 6 record, which confirmed a technical correction.

The S&P 500 slid 4.36% and the Dow Jones Industrial Average lost 3.44%, wiping about $3 trillion off the value of S&P 500 companies.

The Philadelphia SE Semiconductor index plunged more than 12%, and trading volume reached 26.9 billion shares, well above the 20-session average of 17.7 billion. Chipmakers and other AI-linked stocks took the brunt of the damage.

Fears of AI Regulation Hit Chip Stocks Hardest

The trigger was politics. Democrats won control of Congress in Tuesday’s elections, including in states where opposition to new data centers has grown. Investors worried that tougher rules could slow the buildout of AI infrastructure, according to the Reuters report.

Melissa Brown, global head of investment decision research at SimCorp, said any slowdown would raise concerns because AI growth has leaned on rapid construction of supporting infrastructure. Jed Ellerbroek, a portfolio manager at Argent Capital Management, said, “This feels like the capitulation phase for the data center capex beneficiary stocks,” though he thinks the size of the moves is outsized.

The drop followed a strong run. The S&P 500 had posted its biggest one-day gain in three months the day before, and it is still up 7.4% for the year. We recently rounded up ten stocks you are selling and insiders are buying.

A Hot Jobs Report Revives Rate-Hike Bets

Friday’s jobs report did little to calm nerves. Employers added 165,000 jobs in October, more than twice what economists expected, and the unemployment rate edged down to 4.1%, Reuters reported on November 6.

Traders raised their bets on a Federal Reserve rate hike in response. Markets priced about a 78% chance of a quarter-point increase at the central bank’s December 8-9 meeting, up from about 67% on Thursday, and they now expect a final hike in April rather than June. For a look at the other side of the analyst picture, see our ranking of affordable stocks Wall Street analysts like.

Cleveland Fed President Beth Hammack and Richmond Fed chief Thomas Barkin had already hinted at possible future rate hikes, Reuters reported on November 5. Fed Chairman Kevin Warsh said last month that policymakers would watch the accumulation of data to decide whether more tightening is needed. Fitch Ratings analyst Olu Sonola said “the economy remains on firm footing” despite recent AI-related concerns, while Raymond James analysts wrote that they expect the Fed to raise rates by 25 basis points in December.

The Allstate Corporation (ALL): One of the Best 52-Week High Insurance Stocks to Invest In According to Short Sellers

Our Methodology

For this article, we reviewed analyst downgrades issued on Friday, November 6, 2026. We picked the 10 with the largest market caps and ranked them in descending order of average upside potential, based on analysts’ average price target, as of November 6, 2026. We also list each stock’s number of hedge fund holders as of Q2 2026, from our database of 1,006 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 612% since May 2014, beating its benchmark by 375 percentage points (see more details here).

Sell Alert: 10 High-Profile Stocks Just Dumped by Top Analysts

10. iRhythm Holdings (NASDAQ:IRTC)

Market Cap: $2.97 billion

Average Upside Potential: 75%

Number of Hedge Fund Holders: 42

Citi cut iRhythm to Neutral from Buy on November 6, following the company’s third-quarter report, and lowered its price target to $124 from $157. The bank pointed to the company’s raised 2026 revenue outlook, which includes about $16 million from the VitalConnect acquisition. Citi noted that the outlook implies fourth-quarter organic revenue growth of 10%, which it called “a steep quarter-over-quarter decline.”

The quarter itself showed strong demand. Revenue rose 14.9% from a year earlier, and iRhythm credited “sustained volume demand across our customer base.” Gross margin also improved this quarter, helped by a one-time tariff refund benefit.

Profit was messier. The company reported a wider GAAP net loss than a year earlier after booking $49.8 million in litigation settlement charges, net of expected insurance recoveries, while adjusted net income swung to a profit from an adjusted loss.

iRhythm closed the VitalConnect acquisition on October 5, after the quarter ended. The deal adds an FDA-cleared mobile cardiac telemetry offering and broadens the company’s cardiac monitoring portfolio. The updated 2026 revenue guidance includes the expected VitalConnect contribution from the closing date through year-end.

9. Gildan Activewear (NYSE:GIL)

Market Cap: $6.44 billion

Average Upside Potential: 35%

Number of Hedge Fund Holders: 32

UBS analyst Jay Sole cut Gildan to Neutral from Buy on November 6 and lowered his price target to $38 from $71. The downgrade followed a weak third-quarter report and a significant cut to fiscal 2026 EPS guidance. Sole said a tougher macroeconomic environment is hurting the business more than previously expected. UBS expects some top-line headwinds to persist into next year, sees added downside risk to Wall Street’s fiscal 2027 EPS estimates, and sees no positive catalysts until the company’s analyst day in spring 2027. It now sees balanced upside and downside for the shares.

Gildan’s quarter backs up the cut. Revenue of $1.47 billion came in below the company’s guidance of about $1.65 billion, and the 2026 adjusted EPS outlook fell to a range of $3.70 to $3.80 from $4.65 to $4.75. Management pointed to weaker-than-expected demand, an unfavorable product mix, lower selling prices and product availability constraints. Chief executive Glenn Chamandy described “a more subdued demand environment” in both Wholesale and Retail.

Revenue was still up 61.1% from a year earlier because of the HanesBrands acquisition, which we examined in our look at whether Gildan is a bargain or a broken deal.

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