In this article, we will take a look at the 10 biggest losers today.
Wall Street’s key indices opened marginally higher this morning. However, they turned red in mid-day trading Wednesday after the Federal Reserve lifted interest rates by 75 basis points. As of 2:26 PM ET, S&P 500 was down 67 percent, Nasdaq Composite was negative 37 percent and Dow Jones Industrial Average slid 71 percent. In addition, the Fed hinted at further hikes in the coming months to tackle inflation. Officials expect rates to hit 4.4 percent by the end of this year.
Meanwhile, notable U.S. stocks, including United Airlines Holdings, Inc. (NASDAQ:UAL), Micron Technology, Inc. (NASDAQ:MU) and The Chemours Company (NYSE:CC) fell this morning.
Shares of United Airlines Holdings, Inc. moved down after the company grounded 25 of its Boeing 777-200 aircrafts on missing inspections, while The Chemours Company shares dropped after trimming its EBITDA outlook. On the other hand, Micron Technology, Inc. shares fell to a new low this morning after receiving a downgrade from Mizuho. However, the stock recovered its lost value later in the day.
Photo by Adam Nowakowski on Unsplash
10. Aurora Cannabis Inc. (NASDAQ:ACB)
Number of Hedge Fund Holders: 10
Shares of Aurora Cannabis Inc. (NASDAQ:ACB) declined more than six percent this morning after the Canadian cannabis company released its fiscal fourth-quarter results that failed to impress investors.
Aurora Cannabis Inc. reported a loss of C$618.8 million, significantly wider than a loss of C$134 million in the corresponding period of 2021. Revenue for the quarter also dropped to C$50.2 million, from C$54.8 million in the year-ago period.
Meanwhile, Cantor Fitzgerald trimmed its price target for Aurora Cannabis Inc. from $3.12 per share to $3 per share following its fourth quarter performance. The research firm doesn’t see any considerable improvement in the top-line trends in the near term.
9. Sotera Health Company (NASDAQ:SHC)
Number of Hedge Fund Holders: 16
Sotera Health Company (NASDAQ:SHC) is next on the list of 10 biggest losers today. The stock plunged to an all-time low of $7.37 this morning after JPMorgan turned bearish on the sterilization and lab testing services provider.
JPMorgan analyst Casey Woodring cut his ratings for Sotera Health Company from “Overweight” to “Underweight,” citing a recent verdict against the company. Woodring also trimmed his price target from $26 to $9.
The downgrade came a day after a jury announced a $363 million ruling against Sotera Health Company. Plaintiff Susan Kamuda won the award after convincing the jury that she developed breast cancer due to ethylene oxide emissions from one of Sotera’s plants.
8. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Number of Hedge Fund Holders: 19
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is a cargo shipping firm based in Israel. The company specializes in cargo management, tariff handling and related services. The company’s shares fell over three percent today after Goldman Sachs trimmed its price target for ZIM from $60 per share to $30 per share.
Analyst Patrick Creuset revised the price target as a part of a broader research note on European transportation stocks. While Creuset is convinced with the company’s performance in recent years, he expects lower material cash flows for ZIM Integrated Shipping Services Ltd..
Like ZIM Integrated Shipping Services Ltd., shares of United Airlines Holdings, Inc., Micron Technology, Inc. and The Chemours Company also moved down earlier today.
7. Stitch Fix, Inc. (NASDAQ:SFIX)
Number of Hedge Fund Holders: 23
Shares of Stitch Fix, Inc. (NASDAQ:SFIX) fell to a new low in pre-market trading Wednesday after announcing disappointing financial results for its fiscal fourth quarter. The online personal styling service blamed the current macroeconomic environment for the weak results.
Stitch Fix, Inc. reported a loss of 89 cents per share, swinging from earnings of 19 cents per share in the comparable period of 2021. Revenue for the quarter plummeted 16 percent versus last year to $481.9 million. The results missed analysts’ average estimate for a loss of 63 cents per share and revenue of $489 million.
Looking forward, Stitch Fix, Inc. guided for revenue in the range of $455 – $465 million, representing a year-over-year drop of 20 – 22 percent. The sales guidance is also well below the consensus of $525 million.
6. XPeng Inc. (NYSE:XPEV)
Number of Hedge Fund Holders: 24
XPeng Inc. (NYSE:XPEV) rolled out its latest electric G9 SUV today. Yet, the company’s shares plunged over 12 percent this morning following the launch. Today’s sell-off is also a bit surprising, given XPeng’s optimism surrounding the success of G9. Morgan Stanley analyst Tim Hsiao believes the sell-off might be tied to pricing of the XPeng’s new G9 SUV.
The company’s senior management believes the latest model would likely become its best seller. XPeng Inc. is expected to commence the deliveries of G9 next month. The SUV carries a price tag in the range of $45,000 – $65,000, depending on the variant.
XPeng Inc. said G9 comes with fast charging capabilities, giving drivers 100-plus miles with a charge time of just 5 minutes.
5. American Airlines Group Inc. (NASDAQ:AAL)
Number of Hedge Fund Holders: 30
Shares of American Airlines Group Inc. (NASDAQ:AAL) slipped nearly three percent this morning apparently after the Texas-based airline confirmed that hackers accessed the personal data of some customers through phishing.
American Airlines Group Inc. said it is taking additional safety measures to prevent future breaches. According to the company, hackers may have accessed customers’ phone numbers, passport numbers and addresses.
Shares of American Airlines Group Inc. have lost more than 27 percent of their value so far in 2022. Meanwhile, the company is trying to boost its revenue by focusing on business and leisure trips. According to the company’s chief commercial officer, such trips now generate roughly 50 percent of the revenue.
4. The Chemours Company (NYSE:CC)
Number of Hedge Fund Holders: 33
Shares of The Chemours Company dropped to a nearly six-month low this morning after the Delaware-based chemical company trimmed its EBITDA outlook for the full year.
The company now expects adjusted EBITDA in the range of $1.40 – $1.45 billion for the full year, down from its previous guidance between $1.475 – $1.575 billion. Moreover, The Chemours Company now expects free cash flow of at least $575 million, compared to its earlier forecast of at least $600 million.
The Chemours Company blamed weakening demand and higher input costs for hurting its full-year projections. Discussing the outlook, CEO Mark Newman said in a statement:
“In our TT segment, we have experienced a continued decline in our demand outlook throughout the third quarter, most notably in Europe and Asia. Lower demand, coupled with continued high input costs, have impacted our projected results for the full year. In response, we will be extending a scheduled outage on one of our TT production lines, in addition to other cost actions.”
3. United Airlines Holdings, Inc. (NASDAQ:UAL)
Number of Hedge Fund Holders: 35
Shares of United Airlines Holdings, Inc. slid more than five percent after the opening bell on Wednesday. The drop came after the company grounded 25 of its Boeing 777-200 aircrafts on missing the required inspections.
United Airlines Holdings, Inc. had to cancel nearly 18 flights after realizing the airplanes’ had not undergone inspections related to wing edges. The company conveyed the issue to the Federal Aviation Administration (FAA) after an internal audit.
Meanwhile, the FAA said it is investigating events that resulted in missed inspections. On the other hand, United Airlines Holdings, Inc. said it is collaborating with the transportation authority to complete the inspections to avoid further flight cancellations.
2. iRhythm Technologies, Inc. (NASDAQ:IRTC)
Number of Hedge Fund Holders: 36
iRhythm Technologies, Inc. (NASDAQ:IRTC) is next on the list of 10 biggest losers today. The company’s shares fell to a nearly two-month low this morning after disclosing its long-term sales target and reaffirming its fiscal 2022 outlook.
The digital health care company expects to generate $1 billion in annual revenue by 2027. The outlook represents a compound annual growth rate of 20 percent. iRhythm Technologies, Inc. believes its core business in the U.S. and overseas markets would help it achieve the target.
In addition, iRhythm Technologies, Inc. reiterated its sales outlook of $415 – $420 million for the full year. The guidance represents a growth of 29 – 30 percent over last year.
1. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 69
Shares of Micron Technology, Inc. plummeted to a new low before the opening bell on Wednesday. The drop came after Mizuho downgraded the memory and storage solutions provider from “Buy” to “Neutral.”
Mizuho analyst Vijay Rakesh was primarily moved by the weakening DRAM and NAND memory prices. The analyst also referred to the fading demand in China and Europe. He cut his price target for Micron Technology, Inc. from $75 per share to $56 per share.
Meanwhile, investment management firm ArrowMark Partners also discussed Micron Technology, Inc. in its second-quarter 2022 investor letter, stating:
“Micron Technology, Inc. (NASDAQ:MU) is a leader in the production of DRAM and NAND memory. We invested in the stock in the third quarter of 2019 during a cyclical downturn in the memory industry. Our rationale was that, while the memory industry is cyclical, we believed there are strong secular drivers in place that will lead to higher peaks and long-term growth. Our secular thesis is based on our conviction that the quest for ever-increasing compute speeds will increasingly rely on memory to solve bottlenecks and that increased memory content in nearly everything from mobile phones to automobiles will drive demand. Micron’s stock traded lower during the quarter due to macroeconomic concerns that led to lower earnings expectations. We increased our stake in the company, as we believe our secular thesis remains intact. We wanted to take advantage of what we view as temporary cyclical concerns that caused the stock to trade at less than 10x reasonable trough earnings per share (EPS) estimates and less than 7x recent peak EPS.”
You can also take a peek at 12 Best AI Stocks To Buy and 10 Best Cyclical Stocks for Inflation.
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