In this article, we will take a look at the 10 stocks that were recently downgraded by analysts. If you want to see some other stocks on the list, go directly to Analysts are Downgrading These 5 Stocks.
Leading U.S. indices fell slightly in pre-market trading Thursday, apparently on recession fears and soaring Treasury yields. Mega cap stocks, including Apple Inc. (NASDAQ:AAPL), Tesla, Inc. (NASDAQ:TSLA) and Meta Platforms, Inc. (NASDAQ:META), were also in the red.
Apple Inc. (NASDAQ:AAPL) shares fell after receiving a downgrade from BofA, while Tesla, Inc. (NASDAQ:TSLA) shares slipped after Piper Sandler trimmed its price target for the electric vehicle giant.
In addition, analysts also lowered their ratings for CSX Corporation (NASDAQ:CSX) and Lockheed Martin Corporation (NYSE:LMT). Check out the complete article to see why analysts are decreasing their ratings for these stocks.
Jordan Tan / Shutterstock.com
10. Lakeland Bancorp, Inc. (NASDAQ:LBAI)
Number of Hedge Fund Holders: 13
DA Davidson lowered its ratings for Lakeland Bancorp, Inc. (NASDAQ:LBAI) from “Buy” to “Neutral” on Wednesday, September 28, following its recent deal with Provident Financial Services (PFS). The research firm also reduced its price target for the New Jersey-based bank holding company from $22 per share to $18 per share.
The downgrade came a day after Provident Financial Services decided to acquire Lakeland Bancorp, Inc. (NASDAQ:LBAI) in an all-stock transaction valued at approx. $1.3 billion. The deal is expected to close by the second half of 2023.
Speaking on the deal, CEO of Lakeland Bancorp, Inc. (NASDAQ:LBAI), Thomas J. Shara, said in a statement:
“The combination of our companies will allow us to achieve substantially more for our clients, associates, communities, and shareholders than we could alone.”
9. Sunlight Financial Holdings Inc. (NYSE:SUNL)
Number of Hedge Fund Holders: 14
Shares of Sunlight Financial Holdings Inc. (NYSE:SUNL) plummeted more than 20 percent in pre-market trading Thursday, September 29, after Roth Capital downgraded the financial services company from “Buy” to “Neutral.”
The research firm also trimmed its price target for Sunlight Financial Holdings Inc. (NYSE:SUNL) from $10 per share to $2.50 per share. The downgrade came after Sunlight Financial renounced its outlook for the full year, citing volatility in interest rates.
Sunlight Financial Holdings Inc. (NYSE:SUNL) added that one of its biggest solar installers is winding down its operations amid cash flow challenges. The company said it expects to incur certain non-recurring costs due to the development.
8. BTRS Holdings Inc. (NASDAQ:BTRS)
Number of Hedge Fund Holders: 15
Needham decreased its ratings for BTRS Holdings Inc. (NASDAQ:BTRS) from “Buy” to “Hold” on Wednesday, September 28, 2022. The research firm was moved by the company’s decision to be acquired by EQT X fund.
EQT X is buying BTRS Holdings Inc. (NASDAQ:BTRS) in a cash deal valued at about $1.7 billion. According to the terms of the agreement, BTRS shareholders will receive cash of $9.50 for every share they own. The offer price represents a hefty premium of 64 percent from the stock’s closing price of $5.77 on Tuesday, September 27.
Meanwhile, several reports suggest that EQT borrowed most money from private lender Sixth Street to fund the acquisition of BTRS Holdings Inc. (NASDAQ:BTRS). The deal is expected to close in the first quarter of 2023.
7. Cognyte Software Ltd. (NASDAQ:CGNT)
Number of Hedge Fund Holders: 16
Shares of Cognyte Software Ltd. (NASDAQ:CGNT) slid nearly five percent in pre-market trading Thursday, September 29, after Stifel downgraded the security software solutions provider from “Buy” to “Hold.”
Stifel analyst Brad Reback pointed towards the company’s lackluster performance in its fiscal second quarter. He also trimmed his price target for Cognyte Software Ltd. (NASDAQ:CGNT) from $8 per share to $6 per share.
Cognyte Software Ltd. (NASDAQ:CGNT) recently posted mixed financial results for its fiscal Q2. The company reported an adjusted loss of 4 cents per share, narrower than analysts’ average estimate for a loss of 17 cents.
On the downside, Cognyte Software Ltd. (NASDAQ:CGNT) posted revenue of $81.3 million, down 30.1 percent on a year-over-year basis and below the expectations of $92.5 million. The company also released its segment-wise sales results. Its software revenue plummeted 43.7 percent versus last year to $27.02 million, while software services revenue decreased 15.7 percent to $45.44 million in the quarter.
Like Cognyte Software Ltd. (NASDAQ:CGNT), analysts also revised their price targets for Apple Inc. (NASDAQ:AAPL), Tesla, Inc. (NASDAQ:TSLA) and CSX Corporation (NASDAQ:CSX).
6. Avient Corporation (NYSE:AVNT)
Number of Hedge Fund Holders: 17
Oppenheimer lowered its ratings for Avient Corporation (NYSE:AVNT) from “Outperform” to “Perform” on Wednesday, September 28, 2022, citing slowing demand and higher debt load. Moreover, the research firm doesn’t see many transformative catalysts for the polymer services company in the near term.
The downgrade came a day after Avient Corporation (NYSE:AVNT) reduced its full-year adjusted earnings to $2.70 per share, down from its earlier guidance of $3.50 per share. The revised forecast was significantly lower than the consensus of $3.49 per share.
Avient Corporation (NYSE:AVNT) blamed decelerating demand and elevated interest rates for the weak outlook. Moving forward, the company expects global demand to drop further due to the ongoing macro environment.
Click to continue reading and see Analysts are Downgrading These 5 Stocks.
Suggested articles:
- 10 Stocks That Benefit From Interest Rate Hikes
- Best Vacation Stocks To Buy Now
- 10 Best EV Materials Stocks To Buy
Disclosure: None. Analysts are Downgrading These 10 Stocks is originally published on Insider Monkey.
