In this article, we discuss the 5 biggest losers today. If you want to see some other stocks losing value on Wednesday, go directly to 10 Biggest Losers Today.
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. (NASDAQ:AAL) 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. (NASDAQ:AAL) 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 (NYSE:CC) 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 (NYSE:CC) now expects free cash flow of at least $575 million, compared to its earlier forecast of at least $600 million.
The Chemours Company (NYSE:CC) 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. (NASDAQ:UAL) 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. (NASDAQ:UAL) 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. (NASDAQ:UAL) 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. (NASDAQ:IRTC) believes its core business in the U.S. and overseas markets would help it achieve the target.
In addition, iRhythm Technologies, Inc. (NASDAQ:IRTC) 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. (NASDAQ:MU) 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. (NASDAQ:MU) from $75 per share to $56 per share.
Meanwhile, investment management firm ArrowMark Partners also discussed Micron Technology, Inc. (NASDAQ:MU) 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.
