In this article, we will take a look at the 10 stocks losing value following analysts’ downgrades. You can skip our detailed analysis of these companies and go directly to 5 Stocks Losing Value Following Analyst Ratings Downgrades.
Analysts recently lowered their ratings for cryptocurrency exchange platform Coinbase Global, Inc. (NASDAQ:COIN), e-commerce company eBay Inc. (NASDAQ:EBAY) and fashion retailer Farfetch Limited (NYSE:FTCH).
Shares of Coinbase, eBay and Farfetch dropped after receiving the downgrades. In addition, stocks, including Floor & Decor Holdings, Inc. (NYSE:FND) and Mister Car Wash, Inc. (NYSE:MCW), also fell sharply after analysts trimmed their ratings for them.
10. Bed Bath & Beyond Inc. (NASDAQ:BBBY)
Number of Hedge Fund Holders: 15
Shares of Bed Bath & Beyond Inc. (NASDAQ:BBBY) declined for two consecutive trading sessions after receiving a downgrade from B. Riley on Monday, June 27, 2022. The research firm lowered its ratings for the New Jersey-based retail store operator from “Buy” to “Neutral,” citing declining store traffic.
B. Riley analyst Susan Anderson referred to supply-chain disruptions that are weighing on sales. Anderson also cut her price target for Bed Bath & Beyond Inc. (NASDAQ:BBBY) from $17 per share to $7 per share.
Separately, investment management firm L1 Capital mentioned Bed Bath & Beyond Inc. (NASDAQ:BBBY) in its fourth-quarter 2021 investor letter. The firm said:
“Detailed, bottom-up stock research remains the investment team’s primary focus and the core driver of portfolio performance. 2021 once again demonstrated the team’s ability to identify ‘winners’ through extensive company and industry research across a diverse range of sectors. Bed Bath & Beyond‘s shares surged after showing strong operating momentum in early 2021, along with a large buyback program and a short squeeze. Exited holding in January (around $45), near share price peak.”
9. Altair Engineering Inc. (NASDAQ:ALTR)
Number of Hedge Fund Holders: 18
Shares of Altair Engineering Inc. (NASDAQ:ALTR) fell over seven percent on Monday, June 27, 2022, after Goldman Sachs downgraded the Michigan-based tech company from “Neutral” to “Sell.” The research firm expects a potential downside to the company’s fiscal 2022 sales estimates amid macroeconomic uncertainty.
Goldman Sachs analyst Kash Rangan thinks that Altair’s customers are facing tough operating conditions and they might limit their spending, denting Altair’s sales outlook for the full year. Rangan also cut his price target for Altair Engineering Inc. (NASDAQ:ALTR) from $62 per share to $41 per share.
Earlier this year, investment management firm Harding Loevner talked about Altair Engineering Inc. (NASDAQ:ALTR) in its fourth-quarter 2021 investor letter. Here’s what the firm said:
“Altair’s core competitive advantage lies in its “solvers,” software modules that use differential equations to solve physics problems. The company has utilized data from decades’ worth of crash tests to improve its core structural optimization solver, Optistruct. Altair has also been quietly investing in the underlying software tools needed to harness the power of Al, enabling customers to optimize the performance of simulation analysis regardless of whether they are accessing the cloud through Microsoft, Amazon, Oracle, or any of the above in combination with the customer’s in-house hardware. This gives customers flexibility to take advantage of the increased power of the cloud while still amortizing their past investments. Recently, Altair acquired DataWatch, known for its live-streaming analytics capabilities, in anticipation of what management sees as the growing opportunity to continuously enhance its simulations with more real-time data from sensors embedded in its customers’ deployed products —an approach known as ‘digital twins.'”
8. Samsara Inc. (NYSE:IOT)
Number of Hedge Fund Holders: 20
Shares of Samsara Inc. (NYSE:IOT) dropped over five percent on Monday, June 27, 2022, after Goldman Sachs cut its ratings for the California-based IoT company from “Buy” to “Hold.”
Goldman Sachs analyst Kash Rangan believes that persistent logistic hurdles and capital needs would make it hard for Samsara Inc. (NYSE:IOT) to achieve profitability in the near future. Rangan also trimmed his price target for Samsara Inc. (NYSE:IOT) from $27 per share to $16 per share.
Like Samsara Inc. (NYSE:IOT), analysts also recently lowered their ratings for Coinbase Global, Inc. (NASDAQ:COIN), eBay Inc. (NASDAQ:EBAY) and Farfetch Limited (NYSE:FTCH).
7. The Boston Beer Company, Inc. (NYSE:SAM)
Number of Hedge Fund Holders: 22
Shares of The Boston Beer Company, Inc. (NYSE:SAM) slipped over four percent on Tuesday, June 28, 2022, after Goldman Sachs downgraded the alcoholic beverages maker from “Neutral” to “Sell.”
Goldman Sachs analyst Bonnie Herzog referred to the company’s declining hard-seltzer business, arguing that distributors are further decreasing their hard-seltzer inventory. Herzog added that The Boston Beer Company, Inc. (NYSE:SAM) may have to cut its outlook for fiscal 2022. She also lowered her price target for The Boston Beer Company, Inc. (NYSE:SAM) from $380 per share to $318 per share.
6. Varonis Systems, Inc. (NASDAQ:VRNS)
Number of Hedge Fund Holders: 26
Varonis Systems, Inc. (NASDAQ:VRNS) is focused on data security and analytics. It helps businesses manage, analyze and secure enterprise data, such as sensitive files, financial records, and emails.
Shares of Varonis Systems, Inc. (NASDAQ:VRNS) fell over seven percent on Monday, June 27, 2022, after Morgan Stanley downgraded the software company from “Overweight” to “Equal Weight,” citing signs of decelerating top-line growth.
Morgan Stanley analyst Hamza Fodderwala also hinted toward extended sales cycles and limited customer adoption. Fodderwala cut his price target for Varonis Systems, Inc. (NASDAQ:VRNS) from $50 per share to $35 per share.
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Disclosure: None. 10 Stocks Losing Value Following Analyst Ratings Downgrades is originally published on Insider Monkey.
