In this article, we discuss the 5 stocks that analysts are downgrading. If you want to read our detailed analysis of these stocks, go directly to Analysts Are Downgrading These 10 Stocks.
5. Unilever PLC (NYSE:UL)
Number of Hedge Fund Holders: 19
Unilever PLC (NYSE:UL) is ranked fifth on our list of 10 stocks that analysts are downgrading. The firm operates as a fast-moving consumer goods company with operations around the world. It is headquartered in the United Kingdom.
On September 16, investment advisory Deutsche Bank downgraded Unilever PLC (NYSE:UL) stock to Hold from Buy and reduced the price target to GBP4,600 from GBP4,800, noting that the firm was going to have to “show it can outperform earnings expectations” for an upgrade.
At the end of the second quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $844 million in Unilever PLC (NYSE:UL), down from 20 in the previous quarter worth $826 million.
In its Q2 2021 investor letter, Fiduciary Management, an asset management firm, highlighted a few stocks and Unilever PLC (NYSE:UL) was one of them. Here is what the fund said:
“New opportunities… when, where, and why? As disciplined investors, we find ourselves leaning into the wind time and again, and 2021 has been no different. Given the weakness in emerging markets, companies with significant revenue in emerging markets provided a handful of interesting opportunities. For example, we added to our position in Unilever PLC, a blue‐chip consumer staple. The company’s large emerging market exposure (over 50% of revenue), which, historically, had been viewed positively by the market due to better long‐term growth prospects, has weighed on the stock more recently. Growth is expected to rebound as these geographies recover, and the stock trades at a meaningful discount to its peers.”
4. Melco Resorts & Entertainment Limited (NASDAQ:MLCO)
Number of Hedge Fund Holders: 29
Melco Resorts & Entertainment Limited (NASDAQ:MLCO) is a Hong Kong-based firm that owns and operates casino gaming and resort facilities. It is placed fourth on our list of 10 stocks that analysts are downgrading.
On September 16, investment advisory JPMorgan downgraded Melco Resorts & Entertainment Limited (NASDAQ:MLCO) stock to Neutral from Overweight and decreased the price target to $10 from $21, highlighting the tightening regulatory oversight on Macau firms.
At the end of the second quarter of 2021, 29 hedge funds in the database of Insider Monkey held stakes worth $755 million in Melco Resorts & Entertainment Limited (NASDAQ:MLCO), the same as in the preceding quarter worth $728 million.
3. Lear Corporation (NYSE:LEA)
Number of Hedge Fund Holders: 34
Lear Corporation (NYSE:LEA) is a Michigan-based firm that develops and sells automotive seating and electrical systems used by car firms. It is ranked third on our list of 10 stocks that analysts are downgrading.
On September 16, investment advisory Bank of America downgraded Lear Corporation (NYSE:LEA) stock to Underperform from Neutral and decreased the price target to $160 from $200, noting that the valuation of the firm was “less compelling than other suppliers”.
At the end of the second quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $1.24 billion in Lear Corporation (NYSE:LEA), up from 28 in the previous quarter worth $1.21 billion.
2. Wynn Resorts, Limited (NASDAQ:WYNN)
Number of Hedge Fund Holders: 37
Wynn Resorts, Limited (NASDAQ:WYNN) is placed second on our list of 10 stocks that analysts are downgrading. The firm designs, develops, and operates resort facilities. It is headquartered in Nevada.
On September 16, investment advisory JPMorgan downgraded Wynn Resorts, Limited (NASDAQ:WYNN) stock to Neutral from Overweight and reduced the price target to $89 from $122.
At the end of the second quarter of 2021, 37 hedge funds in the database of Insider Monkey held stakes worth $712 million in Wynn Resorts, Limited (NASDAQ:WYNN), down from 49 in the preceding quarter worth $1 billion.
1. Las Vegas Sands Corp. (NYSE:LVS)
Number of Hedge Fund Holders: 48
Las Vegas Sands Corp. (NYSE:LVS) is ranked first on our list of 10 stocks that analysts are downgrading. The company owns and operates resorts around the world and is headquartered in Nevada.
On September 16, investment advisory JPMorgan downgraded Las Vegas Sands Corp. (NYSE:LVS) stock to Neutral from Overweight and decreased the price target to $38 from $59. JPMorgan analyst Joseph Greff downgraded the stock amid the Macau government’s move to expand its casino regulatory oversight. Greff cited “uncertainty and opacity” related to Macau and China policy for the downgrade.
Out of the hedge funds being tracked by Insider Monkey, New York-based firm DE Shaw is a leading shareholder in Las Vegas Sands Corp. (NYSE:LVS) with 5.8 million shares worth more than $308 million.
In its Q2 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Las Vegas Sands Corp. (NYSE:LVS) was one of them. Here is what the fund said:
“The shares of Las Vegas Sands Corporation, a leading developer of luxury casino resorts in Macau and Singapore, declined in the most recent quarter in large part due to COVID-19 travel-related restrictions. We believe the shares are attractively valued and will recover sharply when travel restrictions are lifted.”
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