In this article, we discuss the 5 biggest losers today. If you want to see some other stocks on the list, go directly to 10 Biggest Losers Today.
5. Darling Ingredients Inc. (NYSE:DAR)
Number of Hedge Fund Holders: 33
Shares of Darling Ingredients Inc. (NYSE:DAR) fell nearly three percent this morning after disclosing that it would acquire gelatin and collagen producer Gelnex in a cash transaction valued at $1.2 billion.
Darling Ingredients Inc. (NYSE:DAR) expects to close the deal in the first quarter of 2023. The acquisition will help the company to capitalize on the rapidly growing collagen market. Gelnex, which employs around 1,200 employees, exports collagen products to more than 60 countries across the globe.
Speaking on the development, CEO of Darling Ingredients Inc. (NYSE:DAR), Randall C. Stuewe, said:
“Gelnex is a well-run business and will be immediately accretive. This acquisition will allow Darling to continue to grow its presence in the health and nutrition market and increases our production capacity for grass-fed bovine collagen in South America to help meet the future demand of our collagen customers worldwide.”
4. Truist Financial Corporation (NYSE:TFC)
Number of Hedge Fund Holders: 33
Truist Financial Corporation (NYSE:TFC) managed to meet earnings expectations for the third quarter. However, its Q3 revenue fell short of estimates, sending its shares down more than three percent in mid-day trading Tuesday.
The Charlotte-based financial services company earned $1.24 per share on an adjusted basis, down 13 percent versus the year-ago quarter but in line with expectations. Revenue for the quarter rose 4.6 percent on a year-over-year basis to $5.847 billion, while analysts expected Truist Financial Corporation (NYSE:TFC) to generate revenue of $5.94 billion.
Speaking in the results, CEO of Truist Financial Corporation (NYSE:TFC), Bill Rogers, said in a statement:
“Truist’s third-quarter performance reflected strong progress in many areas of the business, as we delivered strong broad-based loan growth, significant margin expansion and continued exceptional asset quality. Overall financial results were mixed, however, as the challenging market environment impacted our capital markets related revenue.”
3. Signature Bank (NASDAQ:SBNY)
Number of Hedge Fund Holders: 38
Shares of Signature Bank (NASDAQ:SBNY) turned red in pre-market trading Tuesday despite beating profit expectations for the third quarter. The full-service commercial bank reported earnings of $5.57 per share, above the consensus of $5.44 per share.
Signature Bank (NASDAQ:SBNY) attributed the results to net interest income, which increased to $674 million, representing a jump of about 40 percent over the same quarter of 2021.
In addition, Signature Bank (NASDAQ:SBNY) said total deposits stood at $114.47 billion at the end of Q3, compared to $107.85 billion in the corresponding period of 2021.
2. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 65
Shares of Intel Corporation (NASDAQ:INTC) slipped nearly three percent in mid-day trading Tuesday following the news that its self-driving unit Mobileye Global is now looking to achieve a valuation of around $16 billion in the IPO. That’s significantly down from the initial expectations of about $50 billion.
Intel Corporation (NASDAQ:INTC) reportedly cut the expected valuation of the unit due to unstable market conditions. The chipmaker acquired Mobileye back in 2017 for $15 billion. The latest valuation target suggests the company will not be getting any significant return on its investment.
Meanwhile, Intel Corporation (NASDAQ:INTC) has struggled to meet market expectations this year. It missed financial estimates for the second quarter. Many expect a similar performance from the chip giant when it posts its Q3 results later this month.
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 184
Shares of Meta Platforms, Inc. (NASDAQ:META) slightly moved down in mid-day trading Tuesday apparently after the U.K.’s competition watchdog ordered the company to sell animated search platform Giphy.
The Competition and Markets Authority (CMA) owning Giphy could allow Meta Platforms, Inc. (NASDAQ:META) to restrict the access of smaller social media sites to GIFs, making them less competitive.
Separately, Meta Platforms, Inc. (NASDAQ:META) appeared in the third-quarter 2022 investor letter of investment management firm Wedgewood Partners. Here’s what the firm said:
“Meta Platforms, Inc. (NASDAQ:META) detracted from performance during the quarter. Meta’s advertising revenue grew +3% (currency-adjusted) over 2021 and is up +70% since 2019 (pre-pandemic). The shift of advertisers and consumers to social media has been fairly dramatic and sticky. The Company reported $2.88 billion “daily active people” of its Family of Apps (as of June 2022) and is +35% higher than the comparable month pre-COVID (June 2019). Meta also serves over 10 million advertisers which is up from 8 million in January 2020. In spite of these impressive gains, the stock now trades at absolute levels well below where it traded before the pandemic. We suspect much of the market’s concern revolves around slowing revenue growth. It is fairly evident that there was a tremendous pull-forward of demand for many businesses and services over the past couple of years, and that the normalization of revenue growth from that “pull-forward” is hardly an existential crisis. Further, while Meta’s profit margins have fallen below pre-pandemic levels, it’s important to note that the Company likely hired well in excess of what it needed because it assumed the pandemic induced growth would continue. Meta has plenty of room to moderate its expense base and drive significant value by repurchasing shares at today’s historically depressed multiples.”
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