In this article, we discuss the 5 stocks that jumped after Jim Cramer’s negative call. If you want to read about some more stocks that jumped after Jim Cramer’s negative call, go directly to 10 Stocks That Jumped After Jim Cramer’s Negative Call.
5. Bed Bath & Beyond Inc. (NASDAQ:BBBY)
Number of Hedge Fund Holders: 14
Percentage Increase in Share Price Over Past Month as of August 25: 105%
Bed Bath & Beyond Inc. (NASDAQ:BBBY) owns and runs a chain of retail stores. On August 17, Cramer made a bearish case for the shares of the retail firm in an appearance on CNBC. The former hedge fund manager said that people were in “heavy speculation” mode even as the two-year rates go up and that it was the “wrong time” to be on this bandwagon, pointing out that Bed Bath & Beyond Inc. (NASDAQ:BBBY) was “completely paralyzed” and the firm should be selling stock. He said the rally in the shares was reminiscent of the GameStop saga in 2021.
On August 16, Odeon Capital analyst Alexander Arnold downgraded Bed Bath & Beyond Inc. (NASDAQ:BBBY) stock to Sell from Hold with a price target of $7.50, noting that the shares of the firm were rising due to a meme-driven short squeeze.
At the end of the second quarter of 2022, 14 hedge funds in the database of Insider Monkey held stakes worth $23 million in Bed Bath & Beyond Inc. (NASDAQ:BBBY), compared to 15 in the previous quarter worth $69 million.
In its Q2 2022 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Bed Bath & Beyond Inc. (NASDAQ:BBBY) was one of them. Here is what the fund said:
“Bed Bath & Beyond 5.165% 08/2044 declined 67.4% in the period. Bed Bath & Beyond Inc. (NASDAQ:BBBY) reported 4Q21 sales of $2.05 billion, down 22% Y/Y, missing consensus of $2.08 billion. The company lost $0.92 per share in the quarter, down from 4Q20 adjusted EPS of $0.40, below analyst expectations for EPS of $0.03. Management noted supply chain disruptions and the Omicron variant led to inventory availability challenges, which had an estimated sales impact of $175 million, or 8.5% of 4Q21 net sales, and a 400 basis points (bps) Y/Y contraction in 4Q21 adjusted gross margin to 28.8%, driven by product cost increases and higher than anticipated freight and shipping costs. Additional headwinds in the quarter included general weakness in the retail segment, highlighted by big earnings misses from Walmart and Target, along with Moody’s downgrading Bed Bath’s corporate family rating from B1 to B2. The ratings agency cited increased execution risk of the company’s strategic turnaround initiatives and ongoing supply chain issues weighing on the company’s market share and profitability going forward as the main drivers for the downgrade. However, Moody’s maintained a stable outlook for the retailer due to the financial flexibility provided by the company’s liquidity position and low level of funded debt.”
4. Indie Semiconductor, Inc. (NASDAQ:INDI)
Number of Hedge Fund Holders: 15
Percentage Increase in Share Price Over Past Month as of August 25: 16%
Indie Semiconductor, Inc. (NASDAQ:INDI) markets semiconductor products. Cramer has generally been bullish on chip stocks in the past few months but has made a bear case for Indie. In June, the former hedge fund manager took a dig at the firm by saying that he knew about a lot of firms in the chip business that were making a lot of money whose stock was cheap as well. Indie has beaten market estimates on earnings consistently for the last few quarters and expects to cross the profitability barrier in 2023.
On June 15, investment advisory B Riley downgraded Indie Semiconductor, Inc. (NASDAQ:INDI) stock to Neutral from Buy and lowered the price target to $8 from $9. Analyst Craig Ellis issued the ratings update.
At the end of the second quarter of 2022, 15 hedge funds in the database of Insider Monkey held stakes worth $65 million in Indie Semiconductor, Inc. (NASDAQ:INDI), compared to 17 the preceding quarter worth $56 million.
In its Q3 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Indie Semiconductor, Inc. (NASDAQ:INDI) was one of them. Here is what the fund said:
“Indie Semiconductor, Inc. (NASDAQ:INDI) is a fabless designer, developer, and marketer of automotive semiconductors for automated driver assistance systems, user experience, and electrification applications. Indie leverages its cross-domain semiconductor expertise in analog, processing and power chips to integrate multiple chips and capabilities into a single package and offer its customers lower cost products in a smaller form-factor. Indie Semiconductor, Inc. (NASDAQ:INDI) has strong market share in applications such as Apple CarPlay and ultrasonic parking assist with multiple contracts ramping in the coming quarters in applications such as advanced lighting controls, telematics, and electrification. The stock rose on increasing investor recognition of the longer-term opportunity for the company, especially in light of the current automotive semiconductor supply shortage. Semiconductor content in cars is expected to grow substantially over the coming decade as automated safety features and electrification penetrate an increasing percentage of vehicles.”
3. Trane Technologies plc (NYSE:TT)
Number of Hedge Fund Holders: 38
Percentage Increase in Share Price Over Past Month as of August 25: 14%
Trane Technologies plc (NYSE:TT) is a building products firm based in Ireland. Although the company has posted solid earnings for the second quarter of 2022 recently and also raised guidance numbers, Jim Cramer has been bearish on the stock. This is evident from his comments about the firm during the Lightning Round of his show on August 16, during which he advised viewers to invest in peers like Carrier instead of Trane.
On August 4, Wells Fargo analyst Joseph O’Dea maintained an Underweight rating on Trane Technologies plc (NYSE:TT) stock and raised the price target to $133 from $123, noting that the demand commentary was very upbeat for the firm in the second quarter earnings.
At the end of the second quarter of 2022, 38 hedge funds in the database of Insider Monkey held stakes worth $1.8 billion in Trane Technologies plc (NYSE:TT), the same as in the previous quarter worth $1.7 billion.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Trane Technologies plc (NYSE:TT) was one of them. Here is what the fund said:
“Trane Technologies plc (NYSE:TT), another energy efficiency play in the industrials sector that should benefit from trends highlighted in the REPowerEU energy security plan, was a top detractor for the quarter, mainly due to continued supply chain headwinds raising costs. We think there is a strong secular tailwind for the cost and emissions savings Trane provides: the company makes products that help reduce energy consumption and emissions for residential and commercial HVAC and transport refrigeration, the minimization of food waste and other perishable goods and the increased productivity for Trane’s customers. Trane Technologies plc (NYSE:TT) estimates ~15%-25% of all greenhouse gas emissions in the world are emitted through HVAC systems and buildings.”
2. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 53
Percentage Increase in Share Price Over Past Month as of August 25: 34%
Enphase Energy, Inc. (NASDAQ:ENPH) markets home energy solutions and has operations across the world. Even though Cramer has been exceedingly bullish on oil stocks in light of soaring energy prices over the past few months, he has taken an exception to Enphase Energy. In mid-June, Cramer claimed that the shares were too expensive relative to peers in the sector. He added that there were many better stocks in the industry for investors to choose from.
On August 8, JPMorgan analyst Mark Strouse maintained an Overweight rating on Enphase Energy, Inc. (NASDAQ:ENPH) stock and raised the price target to $321 from $261, noting the firm would benefit from the recently passed Inflation Reduction Act.
At the end of the second quarter of 2022, 53 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Enphase Energy, Inc. (NASDAQ:ENPH), compared to 57 the preceding quarter worth $749 million.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Enphase Energy, Inc. (NASDAQ:ENPH) was one of them. Here is what the fund said:
“Enphase Energy, Inc. (NASDAQ:ENPH) is a key solar holding that should be able to take advantage of greater incentives for solar installations in many geographies. The company was also a strong contributor for the quarter, overcoming pressures of a higher discount rate on their strong projected future earnings, raw material inflation and supply chain challenges as their long-term value was reaffirmed.”
1. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 66
Percentage Increase in Share Price Over Past Month as of August 25: 16%
Occidental Petroleum Corporation (NYSE:OXY) is an integrated oil and gas firm. During the Lightning Round of his show on August 16, Cramer outlined his bearish outlook on Occidental. Responding to a viewer question, Cramer asked why people would invest in Occidental when they had options like Devon to choose from. Occidental shares have shot up by over 194% in the past year. Compared to this, Devon shares are up 150%. Legendary value investor Warren Buffett is one of the biggest bulls of the oil and gas firm.
On July 26, investment advisory Barclays maintained an Overweight rating on Occidental Petroleum Corporation (NYSE:OXY) stock and lowered the price target to $79 from $84. Analyst Jeanine Wai issued the ratings update.
At the end of the second quarter of 2022, 66 hedge funds in the database of Insider Monkey held stakes worth $13.7 billion in Occidental Petroleum Corporation (NYSE:OXY), compared to 67 the preceding quarter worth $12.6 billion.
In its Q2 2022 investor letter, Smead Capital Management, an asset management firm, highlighted a few stocks and Occidental Petroleum Corporation (NYSE:OXY) was one of them. Here is what the fund said:
“For the quarter, our best-performing stocks were Continental Resources (CLR), Merck (MRK) and Occidental Petroleum Corporation (NYSE:OXY). Despite a steep sell-off in June in the oil and gas stocks, two of our oil stocks made the quarterly list.
If you are wondering how we are outperforming the S&P 500 Index in the first half of the year, look no further than our top three performers. Occidental Petroleum Corporation (NYSE:OXY), Continental Resources (CLR) and Conoco Phillips (COP) soared in value and were barely represented in the S&P 500 Index. To quote Jerry Jones, owner of the Dallas Cowboys, “We are in the first quarter on higher energy prices!”
You can also take a peek at 13 Best Hemp Stocks to Buy Now and Billionaire Dan Loeb’s Top 10 Stock Picks.
