In this article, we discuss the 5 stocks that just received a Sell rating from analysts. If you want to read our detailed analysis of these stocks, go directly to the 10 Stocks That Just Received Sell Rating from Analysts.
5. Check Point Software Technologies Ltd. (NASDAQ:CHKP)
Number of Hedge Fund Holders: 29
Check Point Software Technologies Ltd. (NASDAQ:CHKP) is ranked fifth on our list of 10 stocks that just received a Sell rating from analysts. The company develops and sells security solutions for the information technology industry. It operates from Israel.
On September 13, investment advisory Goldman Sachs downgraded Check Point Software Technologies Ltd. (NASDAQ:CHKP) stock to Sell from Neutral and lowered the price target to $121 from $133, citing risk to growth driven by a lack of inflection in sales efficiency for the firm.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Two Sigma Advisors is a leading shareholder in Check Point Software Technologies Ltd. (NASDAQ:CHKP) with 1.1 million shares worth more than $134 million.
In its Q1 2021 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and Check Point Software Technologies Ltd. (NASDAQ:CHKP) was one of them. Here is what the fund said:
“Another software holding, Israeli security firm Check Point, saw its shares fall after announcing that investments to fund its future growth will reduce margins this year.”
4. ChampionX Corporation (NASDAQ:CHX)
Number of Hedge Fund Holders: 30
ChampionX Corporation (NASDAQ:CHX) is a Texas-based firm that provides technology and equipment solutions to the oil and gas industry. It is placed fourth on our list of 10 stocks that just received a Sell rating from analysts.
On September 17, investment advisory Goldman Sachs initiated coverage of ChampionX Corporation (NASDAQ:CHX) stock with a Sell rating and a price target of $22, noting that the firm generated revenue from North American markets where volume growth is likely “muted”.
At the end of the second quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $525 million in ChampionX Corporation (NASDAQ:CHX), up from 28 in the previous quarter worth $589 million.
3. 3M Company (NYSE:MMM)
Number of Hedge Fund Holders: 42
3M Company (NYSE:MMM) is a Minnesota-based diversified industrial manufacturer. It is ranked third on our list of 10 stocks that just received a Sell rating from analysts.
On September 17, investment advisory UBS maintained a Sell rating on 3M Company (NYSE:MMM) stock and lowered the price target to $172 from $183, citing intensifying sales and margin pressure from supply chain constraints for the firm in the near term.
Out of the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading shareholder in 3M Company (NYSE:MMM) with 5.3 million shares worth more than $1 billion.
2. Airbnb, Inc. (NASDAQ:ABNB)
Number of Hedge Fund Holders: 58
Airbnb, Inc. (NASDAQ:ABNB) is placed second on our list of 10 stocks that just received a Sell rating from analysts. The firm owns and operates a travel-related platform and is headquartered in California.
On September 13, investment advisory Goldman Sachs initiated coverage of Airbnb, Inc. (NASDAQ:ABNB) stock with a Sell rating and a price target of $132, underlining that the stock had a “negative risk/reward skew” in context of a volatile travel environment ahead.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Airbnb, Inc. (NASDAQ: ABNB) with 3.4 million shares worth more than $526 million.
In its Q2 2021 investor letter, Worm Capital LLC, an asset management firm, highlighted a few stocks and Airbnb, Inc. (NASDAQ:ABNB) was one of them. Here is what the fund said:
“Throughout the quarter, you may have noticed that we averaged into a significant position in Airbnb (ABNB). Though the stock has been a relative underperformer since its February highs, we are highly confident about the company’s prospects and its ability to generate meaningful compounded returns over time.
Some history: We have been following Airbnb’s journey for several years, long before the company went public earlier this year. (In fact, nine years ago, in November 2012, Eric profiled the company for Inc.: “Airbnb Is Changing Travel.”)
Whenever we underwrite a new investment, we look for a few key attributes that help us determine the potential long-term value of a business, as well as its risks. In particular, we focus on management (Are they founders? Do they have skin the game? Are they playing the long game?), addressable market size (How big is the opportunity?), its relative growth and creativity to expand (Are they constantly innovating to make the product better for their customers?), margin expansion (Where can we find operating leverage in the model?), its status in the industry (Are they the dominant player? Can they
take market share from incumbents?), business risks (What are we missing? Are customers dissatisfied? What do employees say?) and probably a dozen more elements that are critical to our process. It’s only then do we take out the pencils do the valuation work.
In short, ABNB fulfills pretty much every element of a business model we’re attracted to: First, it’s highly scalable marketplace-based business model that unites buyer and seller with observable flywheel effects. (This is an important observation, in that the platform creates significant economic value for millions of hosts who rely on Airbnb, which in turn attracts new hosts who identify the opportunity, which creates more inventory, which turn attracts more travelers, which attracts more hosts, and soon.) Second, it has a global focus with significant opportunities to expand its operating leverage; Third, its management—which is still founder-led—stands out to us as long-term thinkers capable of handling crisis, which the team demonstrated throughout the pandemic by dropping operating costs and turning the business into a more efficient, lean organization. (Like Churchill said: “Never let a good crisis go to waste.”)..”
1. Twitter, Inc. (NYSE:TWTR)
Number of Hedge Fund Holders: 89
Twitter, Inc. (NYSE:TWTR) is ranked first on our list of 10 stocks that just received a Sell rating from analysts. The firm owns and runs a social networking platform and is headquartered in California.
On September 13, investment advisory Goldman Sachs initiated coverage of Twitter, Inc. (NYSE:TWTR) stock with Sell rating and a price target of $60, noting that the advertising recovery for the firm was already priced into the shares.
At the end of the second quarter of 2021, 89 hedge funds in the database of Insider Monkey held stakes worth $6 billion in Twitter, Inc. (NYSE:TWTR), down from 107 in the preceding quarter worth $4.5 billion.
RGA Investment Advisors, in its Q1 2021 investor letter, mentioned Twitter, Inc. (NYSE:TWTR). Here is what the fund has to say in its letter:
“‘The bird has wings’—Twitter’s quarter started off somewhat ominously, with Twitter the worst performing stock in the S&P 500 following the January 6th insurrection and questions about the stickiness of the userbase after permanently suspending the account of President Trump.8 By the end of the quarter, Twitter was one of the best performers in the index after exceptionally strong fourth quarter earnings and guidance for the year and an upbeat analyst day that highlighted a rapidly evolving product roadmap placing the timeline at the center of ephemeral (fleets), long form (Revue) and voice (Spaces). The improvements to the experience makes the platform more accessible and provides more opportunity to continue growing the userbase. Importantly, Twitter also embraced what we have been calling “creative empowerment” in previewing SuperFollows and a host of features designed to help content creators and contributors monetize their own audience on Twitter itself. These developments, alongside considerable progress on the advertising platform give us growing conviction that Twitter will deliver on its largely untapped opportunity—in other words, the value creation opportunity on top of the low multiple we were able to build our position at. Elliot spoke at length about these developments on Yet Another Value Podcast with Andrew Walker and The Business Brew with Bill Brewster, which we invite you to check out.”
You can also take a peek at 10 Stocks Jim Cramer and Ken Fisher Have in Common and 10 Best Nickel Stocks to Buy Now.
