In this article, we will take a look at the 5 worst performing stocks in S&P 500. To read our analysis of the recent trends and market activity, you can go to the 15 Worst Performing Stocks in S&P 500.
5. Paramount Global (NASDAQ:PARA)
YTD Performance as of February 23: -24.21%
Number of Hedge Fund Holders: 43
Paramount Global (NASDAQ:PARA) is a leading global media and entertainment company comprising studios, networks, and streaming services, through a portfolio of brands that includes well-known names such as CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+, Pluto TV and Simon & Schuster, among others.
On April 27, Paramount Global (NASDAQ:PARA) announced a partnership with online retail giant, Amazon.com, Inc. (NASDAQ:AMZN) which would provide users access to on-Amazon buying experience. The partnership is part of the company’s efforts to make the content available on the platform shoppable.
Paramount Global (NASDAQ:PARA) ranks 5th on our list of 15 worst performing stocks in S&P 500. The shares of the company were owned by 43 hedge funds with a total value of $1.9 billion, as of Q4 2023. Warren Buffett’s Berkshire Hathaway is the largest shareholder among hedge funds with ownership of 63.3 million shares valued at $937 million.
4. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
YTD Performance as of February 23: -24.34%
Number of Hedge Fund Holders: 56
New York City-based Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a global media and entertainment company. It was formed in April 2022 through the merger of WarnerMedia’s merger with Discovery which combines premium entertainment, sports and news assets with leading non-fiction and international entertainment and sports businesses.
On February 23, Warner Bros. Discovery, Inc. (NASDAQ:WBD) released its financial results for Q4 2023 which failed to meet the consensus estimates for EPS and revenue. The company generated a revenue of $10.3 billion and a normalized EPS of -$0.13, which missed expectations by $0.12.
In its Q3 2023 “Partners Fund” investor letter, Longleaf Partners, managed by Southeastern Asset Management, made the following comments about Warner Bros. Discovery, Inc. (NASDAQ:WBD):
“Media conglomerate Warner Bros Discovery (WBD) declined in the quarter with a combination of the writers’ and actors’ strikes headlines, and a fight between Charter and Disney that led to more concerns about the linear and streaming profit structure. Although both situations actually improved as the quarter went on, both created uncertainty that weighed heavily on the WBD stock price in the near term. The underlying business is executing better, with solid free cash flow generation reported in the quarter that should continue for the foreseeable future. The competitive landscape is getting brighter with multiple streamers taking price increases. WBD is in the hands of a strong management team and board that are focused on creating long-term value for shareholders.”
3. Newmont Corporation (NYSE:NEM)
YTD Performance as of February 23: -24.43%
Number of Hedge Fund Holders: 53
Denver, Colorado-based Newmont Corporation (NYSE:NEM) is the world’s leading gold company and a producer of copper, zinc, lead, and silver. Its portfolio of assets, prospects and talent is anchored in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea.
On February 22, Newmont Corporation (NYSE:NEM) announced ‘balanced capital allocation strategy’. As part of the strategy, the company intends to divest 6 non-core assets and 2 non-core projects. It also intends to reduce its debt through free cash flow and proceeds from divestments. In addition, the company intends to return capital to shareholders through annualized dividend of $1.0 per share and $1.0 billion share repurchases over the next two years.
As of Q4 2023, 53 hedge funds owned shares of Newmont Corporation (NYSE:NEM), valued at a whopping $849 million. First Eagle Investment Management owns 23.8 million shares of the company, valued at $983 million.
2. Archer Daniels Midland Company (NYSE:ADM)
YTD Performance as of February 23: -25.99%
Number of Hedge Fund Holders: 34
Archer Daniels Midland Company (NYSE:ADM) is a major player in the food industry, with a diverse portfolio of products including oils, sweeteners, starches, proteins, and feed ingredients. It engages in every aspect of the food and feed production process, from sourcing and processing raw materials to delivering finished products to customers.
On February 1, Citigroup initiated coverage of Archer Daniels Midland Company (NYSE:ADM) with a price target of $57 and a ‘Neutral’ rating for the shares. The stock ranks #2 on our list of 15 worst performing stocks in S&P 500 based on its year-to-date performance.
As of Q4 2023, Archer Daniels Midland Company (NYSE:ADM) shares were held by 34 hedge funds with a total value of $819 million. Cliff Asness’ AQR Capital Management was its largest hedge fund shareholder with ownership of 2.2 million shares valued at $159 million.
1. MarketAxess Holdings Inc. (NASDAQ:MKTX)
YTD Performance as of February 23: -26.61%
Number of Hedge Fund Holders: 27
New York-based MarketAxess Holdings Inc. (NASDAQ:MKTX) operates a leading institutional electronic trading platform focused on global fixed-income markets. Its network comprises over 2,000 firms, including the world’s leading asset managers and institutional broker-dealers.
According to the Insider Monkey data on 933 leading hedge funds, 27 hedge funds were long MarketAxess Holdings Inc. (NASDAQ:MKTX) shares as of Q4 2023, with the total shares held by hedge funds valued at $931 million.
In its Q4 2023 investor letter, Polen Capital, an investment management company, made the following comments about MarketAxess Holdings Inc. (NASDAQ:MKTX):
“MarketAxess operates one of the leading electronic trading platforms for fixed income securities, with over 2,000 institutional investors and broker-dealers using their trading solutions. In our opinion, the company only has 2-3 legitimate global e-trading competitors in a high barrier-to-entry market. Over the past five years, the share price has been roughly flat as the previously elevated multiple compressed due to the rollout of new competitive protocols that cut into their monopoly position in U.S. credit as well as due to a shift in macro conditions (i.e., rising rates impact on fixed income). We believe the shares now trade at a far more reasonable multiple, and the company has invested heavily in new technology, product categories, and geographies to level with their capable competitors. As the company begins to lap these near-term difficult macro conditions, we believe EPS can potentially compound at a mid-teens rate (or higher) as this outstanding, highly cash-generative business returns to form.”
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