In this article, we take a look at five stocks that are being downgraded today. If you want to take a look at some more stocks that analysts are downgrading on Friday and the latest market situation, go to Analysts Are Downgrading These 10 Stocks on Friday.
5. Atmos Energy Corporation (NYSE:ATO) was downgraded from a Buy to a Neutral rating by Insoo Kim at Goldman Sachs. The analyst maintained a target price of $113 on Atmos Energy Corporation (NYSE:ATO), reflecting a potential upside of less than 1% from Thursday’s close. Kim stated that Atmos Energy Corporation (NYSE:ATO) is a pure-play in gas transmission and could be under pressure due to higher gas delivery costs. The rise in expenses could limit Atmos Energy Corporation’s (NYSE:ATO) ability to expand further. However, the analyst continues to see the Dallas, Texas-based utility company as a premium regulated company with the best-forecasted EPS growth among its competitors.
As of Q4 2021, Atmos Energy Corporation (NYSE:ATO) was held by 20 hedge funds.
4. Carvana Co. (NYSE:CVNA) was downgraded from a Buy to a Hold rating by John Colantuoni at Jefferies. The analyst also reduced the target price on Carvana Co. (NYSE:CVNA) from $150 to $40. The revised target price provides a modest potential upside of 6.95% from yesterday’s closing price. The analyst thinks that the upside potential of the shares “could be capped until liquidity concerns subside.” Carvana Co. (NYSE:CVNA) stock has lost more than 90% of its value from the August 2021 high of $377. This supports bears’ concern about the long-term sustainability of the company’s business model and its ability to balance growth and profitability.
Out of the 924 hedge funds covered by Insider Monkey, 56 funds held a stake in Carvana Co. (NYSE:CVNA) at the end of Q4 2021.
3. PetIQ, Inc. (NASDAQ:PETQ) was downgraded from an Outperform to a Perform rating by Rupesh Parikh at Oppenheimer. The analyst anticipates the company’s product segment to continue its momentum. However, PetIQ, Inc. (NASDAQ:PETQ) is expected to face pressure due to ongoing staff shortages. Moreover, Parikh thinks that the analysts’ estimates are too aggressive and could be challenging for PetIQ, Inc. (NASDAQ:PETQ) to meet in the near future.
PetIQ, Inc. (NASDAQ:PETQ) was held by 13 hedge funds, with a combined value of $66.78 million, as of Q4 2021.
2. Proterra Inc. (NASDAQ:PTRA) was downgraded from a Buy to an Underperform at the Bank of America. The price target on Proterra Inc. (NASDAQ:PTRA) was also revised from $12.25 to $5. The target price is 2% lower than yesterday’s closing price. Although the California-based company is seen as a leader in the commercial EV space, Proterra Inc. (NASDAQ:PTRA) is facing significant headwinds in the form of supply chain disruptions, similar to its peers in the industry.
On a sequential basis, the number of hedge funds invested in Proterra Inc. (NASDAQ:PTRA) decreased by seven to 13 hedge funds as of Q4 2021.
1. TuSimple Holdings Inc. (NASDAQ:TSP) was downgraded from an Outperform to a Sector Perform rating by Joseph Spak at RBC Capital. The analyst also slashed the target price on TuSimple Holdings Inc. (NASDAQ:TSP) from $14 to $7, reflecting a potential downside of 4% from Thursday’s closing price. Spak has confidence in autonomous trucking technology and TuSimple Holdings Inc. (NASDAQ:TSP) happens to be one of the leaders in the segment. However, the analyst shared that the milestones reached by the company “are not enough in the market” to attract investors, as any potential investment is unlikely to yield a significant return in the next five years.
Out of the 924 hedge funds being tracked by Insider Monkey, TuSimple Holdings Inc. (NASDAQ:TSP) was held by 15 hedge funds at the end of Q4 2021.
You can also take a peek at the 10 Best Undervalued Large-Cap Stocks According to Hedge Funds and Top 9 Stocks Billionaire Larry Robbins Just Added to His Portfolio.
