A Look At Five Of Today’s Top Losers And Developments Behind Their Moves

The American markets are set to end the year slightly lower, while European markets, touted for a slump by analysts, have ended 2015 on a high note. Italy is up by 13% and Germany and France are up by 9.5% each, while the U.S. markets are mostly flat with small chances for a massive movement so close to the end of the year. So far today, U.S. stocks have been trading lower amid falling oil prices. In this article we’ll take a look at some of the biggest losers, namely Anavex Life Sciences Corp. (NASDAQ:AVXL), Pep Boys – Manny Moe & Jack (NYSE:PBY), Chesapeake Energy Corporation (NYSE:CHK), Freeport-McMoRan Inc (NYSE:FCX) and Seadrill Ltd (NYSE:SDRL).

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The prospect of a potential SEC investigation is putting more pressure on the shares of Anavex Life Sciences Corp. (NASDAQ:AVXL), which are down by as much as 5% during the first hours of trading today. The company denies any wrongdoing, having stated its willingness to cooperate with the regulatory agency in a recent filing. Anavex said it “believes the subpoena and investigation relate to the recent unusual activity in the market for the company’s shares,” not any wrongdoings by its executives or directors.

Shares of Pep Boys – Manny Moe & Jack (NYSE:PBY) are also down this morning, as the bidding war between Icahn Enterprises and Bridgestone Corp has come to an end, with Carl Icahn emerging as the winner. The car parts and repair chain is set to be acquired by Icahn’s company for approximately $1 billion or $18.50 a share, after Bridgestone refused to match Icahn’s latest offer. The corporate raider was pleased with the outcome, stating that he has been looking to buy a company like Pep Boys since the acquisition of Auto Plus earlier this year.

The Pep Boys – Manny Moe & Jack (NYSE:PBY) fan club registered a massive exodus during the third quarter, with the number of elite funds invested dropping to 18 at the end of September from 29 a quarter earlier. John Orrico and his fund, Water Island Capital, are set to profit handsomely from this deal, having established a position that amassed 1.52 million shares at the end of September.

Chesapeake Energy Corporation (NYSE:CHK) is turning into a real headache for Carl Icahn, as the troubled energy company is trending ever lower. With oil prices down by more than 3% today, shares of Chesapeake Energy have followed suit, dropping by as much as 9% during the first hours of trading. So far this year, the stock is the worst performer from the S&P500, down by 77.4%.

At the end of September, roughly 25% of Chesapeake Energy Corporation (NYSE:CHK) common stock was held by 34 hedge funds, up from 33 at the end of June. Robert Pitts shares Icahn’s bullishness on this stock, having himself established a $67.6 million position during the quarter. His fund, Steadfast Capital Management, reported ownership of 9.23 million shares of Chesapeake Energy in its latest 13F filing.

Freeport-McMoRan Inc (NYSE:FCX) is also in the red today on the back of oil prices. Moreover, the recent departure of its Chairman & Co-Founder, James R. Moffett, could spell trouble for the company’s operations in Indonesia. Freeport-McMoRan is currently in negotiations with the Indonesian government to extend the contract on its Grasberg mine, a site discovered by Mr. Moffett. It is understood that he played a key role in the relationship between the company and Indonesia’s officials. In 2014, roughly 93% of Freeport-McMoRan’s gold and a sixth of its copper production were attributed to the Grasberg mine, racking up $3 billion in revenues.

The number of hedge funds that have reported a long position in Freeport-McMoRan Inc (NYSE:FCX) rose to 44 by the end of September, from 41 three months earlier. Carl Icahn has made a huge play on this stock during the quarter, building up a position that amassed exactly 100 million shares, worth close to $1 billion when Icahn Capital filed its latest quarterly report.

Seadrill Ltd (NYSE:SDRL) is another victim of today’s slump in oil prices, with the shares down by 5% from yesterday’s closing price. Although the stock made two attempts to rally in January and April, none were successful and it has been steadily declining since the middle of May, currently down by 70% year to date. Financial-wise the company has not been doing great either, with revenues falling in the last four quarters. For the 2015 third quarter, Seadrill posted a loss of $1.83 billion or $3.70 per share. When adjusted for investment costs and asset impairment costs, earnings stood at $0.21 per share. The company also announced revenues of $985 million, down by roughly 24% year over year.

Jim Simons‘ Renaissance Technologies holds a significant stake in Seadrill Ltd (NYSE:SDRL), having also reported a 9% increase in its holding over the third quarter. According to its latest 13F filing, RenTech now holds 2.97 million shares worth roughly $17.5 million. Seadrill has gained a boost of popularity during the third quarter, with the number of funds with long positions having increased by five, as 23 elite funds reported a stake in the company at the end of September.

Disclosure: none.