In this article, we will discuss some of the notable stocks getting hammered today. To take a look at some more stocks that are moving down, go to 5 Stocks Getting Hammered on Friday.
All the three prominent US market indices are in the green for the fourth consecutive day, and the markets are on their way to closing the week on a positive note following the first increase in interest rate by the Federal Reserve since 2018. However, companies like Centerra Gold Inc. (NYSE:CGAU), Ambac Financial Group, Inc. (NYSE:AMBC), and TransUnion (NYSE:TRU) appear to be moving in the opposite direction to the market.
Let’s look at the reasons the stocks are declining today and discuss how hedge funds are positioned in them.
Source:unsplash
10. FedEx Corporation (NYSE:FDX) is down over 4.2% as of 11:15 AM ET after the Memphis, Tennessee-based freight and logistics company missed the consensus EPS estimates for Q3 2022. EPS for the three months was posted at $4.49 and fell short of the analysts’ estimate of $4.65. FedEx Corporation (NYSE:FDX) has been under pressure due to labor shortages in the US, and the package volume has been lower than expected. However, higher pricing is aiding the company in fighting these headwinds. Sales were recorded at $23.6 billion and surpassed the consensus estimate of $23.5 billion. Of the 924 hedge funds in Insider Monkey’s database, 64 funds held a stake in FedEx Corporation (NYSE:FDX) as of Q4 2021.
9. Wingstop Inc. (NASDAQ:WING) has fallen 5.1% as of 11:36 AM ET after the Addison, Texas-based restaurant received a double downgrade from an Overweight to an Underweight rating from Nicole Miller at Piper Sandler. Moreover, the analyst revised the target price from $195 to $102. Miller anticipates Wingstop Inc. (NASDAQ:WING) stock to experience significant resistance in obtaining the premium valuation, in terms of multiples, in the middle of a restaurant industry expansion cycle. Overall, 18 hedge funds held a position in Wingstop Inc. (NASDAQ:WING) as of Q4 2021. Terry Smith-led Fundsmith LLP is the leading hedge fund investor in the company, with a stake of $97.49 million.
8. Cummins Inc. (NYSE:CMI) has lost 2.7% of its value as of 11:42 AM ET after the diesel, natural gas engine manufacturer, and distributor received a downgrade in rating earlier today. Steven Fisher at UBS downgraded Cummins Inc. (NYSE:CMI) from a Buy to a Neutral rating and slashed the target price from $260 to $214. The analyst highlighted that investors anticipate next year as the peak year for the North American trucking industry, and the EPS multiple will fall back to its historical peak multiple of 9x to 10x. The number of hedge funds invested in Cummins Inc. (NYSE:CMI) stands at 40 as of Q4 2021, up from 30 in the previous quarter.
7. United States Steel Corporation (NYSE:X) has fallen 5.1% as of 11:26 AM ET after the Pittsburgh, Pennsylvania-based steel manufacturing company issued Q1 2022 guidance following the closing bell yesterday. United States Steel Corporation (NYSE:X) anticipates adjusted EPS to be between $2.96 to $3, compared to the Q4 2021 adjusted EPS of $3.64 and the consensus estimate of $3.77. In the guidance, United States Steel Corporation (NYSE:X) highlighted that due to rising spot steel prices and geopolitical situations, there is an increase in backlog at the company’s Big River Steel operations. As of Q4 2021, 39 hedge funds had a holding in United States Steel Corporation (NYSE:X). D E Shaw was long over 7 million shares of United States Steel Corporation (NYSE:X) at the end of Q4 2021.
6. JOANN Inc. (NASDAQ:JOAN) has declined over 10% as of 11:59 AM ET after Peter Keith at Piper Sandler downgraded the stock from an Overweight rating to a Neutral rating and also revised the target price from $12 to $11. The analyst thinks that the revenue guidance provided by the Hudson, Ohio-based specialty retail company is unfavorable as comparable sales have fallen by another 5% in the past few weeks. Furthermore, the gross profit margin is expected to feel headwinds due to rising contracted ocean freight rates well into 2023. Out of the 924 hedge funds tracked by Insider Monkey, 15 hedge funds held a stake in JOANN Inc. (NASDAQ:JOAN) at the end of Q4 2021.
In addition to JOANN Inc. (NASDAQ:JOAN), some of the companies experiencing a swing in stock price today include Centerra Gold Inc. (NYSE:CGAU), Ambac Financial Group, Inc. (NYSE:AMBC), and TransUnion (NYSE:TRU).
Click to continue reading and see 5 Stocks Getting Hammered on Friday.
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Disclose. None. 10 Stocks Getting Hammered on Friday is originally published on Insider Monkey.
