5 Small-Cap Stocks to Sell Now Before Recession Begins

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1. Brinker International, Inc. (NYSE:EAT)

Number of Hedge Fund Holders: 27

Market Cap as of May 27: $1.12 billion 

Percentage Decline in Share Price Year-to-Date: 18.98%

Brinker International, Inc. (NYSE:EAT) owns and runs casual dining restaurants. The stock has nosedived in recent weeks as the disappointing earnings of the firm showed the impact of inflation and labor costs on the business. The company missed market expectations on earnings per share for the first quarter of 2022 by $0.11. The diluted EPS forecasts of the firm for 2022 also fell short of analysts’ predictions, with the firm forecasting $3.05 to $3.30 against consensus estimates of $3.48.

On May 9, Stifel analyst Chris O’Cull maintained a Hold rating on Brinker International, Inc. (NYSE:EAT) stock and lowered the price target to $40 from $42, noting that “inflationary pressures continue to impact margin performance” of the firm. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Tremblant Capital is a leading shareholder in Brinker International, Inc. (NYSE:EAT), with 1.2 million shares worth more than $46 million. 

At the end of the first quarter of 2022, 27 hedge funds in the database of Insider Monkey held stakes worth $170 million in Brinker International, Inc. (NYSE:EAT), compared to 35 in the previous quarter worth $185 million.

You can also take a peek at 13 Best Hemp Stocks to Buy Now and Billionaire Dan Loeb’s Top 10 Stock Picks.

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