In this article, we discuss the 5 stocks analysts have recently downgraded. If you want to read our detailed analysis of these companies, go directly to Analysts Are Downgrading These 10 Stocks.
5. Envista Holdings Corporation (NYSE:NVST)
Number of Hedge Fund Holders: 37
Shares of Envista Holdings Corporation (NYSE:NVST) hit a new 52-week low of $36.21 on Tuesday, June 14, 2022, after Baird downgraded the California-based global dental products company from “Outperform” to “Neutral.” The research firm also trimmed its price target for Envista stock from $54 per share to $46 per share.
The downgrade follows Baird’s recent dental survey, which shows declining spending projections for dental equipment. In a research note to clients, Baird analyst Jeff Johnson expressed concerns over discretionary spending on dental due to the elevated inflationary environment.
4. Hewlett Packard Enterprise Company (NYSE:HPE)
Number of Hedge Fund Holders: 43
Hewlett Packard Enterprise Company (NYSE:HPE) recently received a downgrade from Deutsche Bank. The research firm lowered its ratings for the Palo Alto-based information technology company from “Buy” to “Hold,” besides cutting its price target for the stock from $18 per share to $16 per share.
Deutsche Bank analyst Sidney Ho expressed concerns over demand in the IT hardware space. Ho believes that supply disruptions are weighing on near-term sales and margins of Hewlett Packard Enterprise Company (NYSE:HPE). The analyst also expects weak spending from software and semiconductor firms.
3. DocuSign, Inc. (NASDAQ:DOCU)
Number of Hedge Fund Holders: 45
Shares of DocuSign, Inc. (NASDAQ:DOCU) continued their downward trend and fell more than three percent on Tuesday, June 14, 2022, hitting a new low of $57.14. DocuSign stock is now down about 60 percent on a year-to-date basis.
The latest drop follows a downgrade from Wolfe Research, which cut its ratings for the stock from “Peer Perform” to “Underperform.” The downgrade came just a few days after the mixed quarterly performance of DocuSign, Inc. (NASDAQ:DOCU).
Last week, DocuSign, Inc. (NASDAQ:DOCU) reported adjusted earnings of 38 cents per share for its fiscal first quarter, missing analysts’ average estimate of 46 cents per share. Moreover, Wolfe Research analyst Alex Zukin also expressed dissatisfaction over the company’s 2023 billings guidance.
2. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 46
JPMorgan recently slashed its ratings for Coinbase Global, Inc. (NASDAQ:COIN) from “Overweight” to “Neutral,” and trimmed its price target for the stock from $171 per share to $68 per share. The downgrade follows a sharp drop in the price of digital currencies.
JPMorgan analyst Kenneth Worthington thinks the declining prices of cryptocurrencies would impact the profitability of Coinbase Global, Inc. (NASDAQ:COIN) in the near future. Worthington also expects the downturn in the crypto market to negatively impact Coinbase Global’s revenue.
Meanwhile, Coinbase Global, Inc. (NASDAQ:COIN) plans to trim 18 percent of its full-time workforce. The percentage translates to about 1,100 job cuts. The news follows the dropping share price of Coinbase. The stock has lost about 80 percent of its value so far in 2022.
1. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 109
Shares of Netflix, Inc. (NASDAQ:NFLX) slipped over one percent on Tuesday, June 14, 2022, after research firm Benchmark turned bearish on the California-based video streaming giant. Benchmark analyst Matthew Harrigan thinks Netflix could face difficulties in case of weak subscriber and profit margin growth.
Harrigan downgraded Netflix, Inc. (NASDAQ:NFLX) from “Hold” to “Sell” and set a price target of $157 per share for the stock. Netflix published its last quarterly report in April. Back then, the company announced a significant drop in subscriber numbers and slower sales growth. Netflix stock has lost nearly 50 percent of its value since reporting its fiscal first-quarter results on April 19, 2022.
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