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 Thursday and the latest market situation, go to Analysts are Downgrading These 10 Stocks Today.
5. Dow Inc. (NYSE:DOW)
Number of Hedge Fund Holders: 39
Dow Inc. (NYSE:DOW) received a downgrade in rating from Outperform to In-Line by Stephen Richardson at Evercore ISI. The analyst maintained a target price of $68 on Dow Inc. (NYSE:DOW) stock, providing a slim potential upside of 1.04% from the last closing price. Richardson commented that Petrochemical stocks had led the global chemical sector since the start of the year as concerns related to inflation encouraged investors to invest in companies where the rising cost of raw materials and feedstocks can be forwarded to customers immediately. However, the analyst anticipates the Q2 2022 margins for feedstock to narrow due to rising natural gas and NGL prices. As a result, the analyst anticipates a slowdown in Dow Inc.’s (NYSE:DOW) top line and a contraction in the margin, resulting in a safer view of the stock through the downgrade.
At the end of Q1 2022, 39 hedge funds held a stake in Dow Inc. (NYSE:DOW).
4. Molina Healthcare, Inc. (NYSE:MOH)
Number of Hedge Fund Holders: 36
Molina Healthcare, Inc. (NYSE:MOH) has declined 6.03% as of 11:22 AM ET after the California-based Medicaid-levered managed-care company received a double downgrade in rating from Kevin Fischbeck at Bank of America. The analyst downgraded Molina Healthcare, Inc. (NYSE:MOH) from a Buy to an Underperform rating. He also decreased the price target on Molina Healthcare, Inc. (NYSE:MOH) from $355 to $335, reflecting a potential upside of 12.81% from the last closing price. Fischbeck expressed concern over the anticipated higher medical loss ratio for 2023. The analyst also added that Molina Healthcare, Inc. (NYSE:MOH) does not have many factors in its favor to counteract the impact. Molina Healthcare, Inc. (NYSE:MOH) would have to undergo the impact of lower Medicaid membership along with the expiry of the Affordable Care Act subsidies.
Of the 912 hedge funds in Insider Monkey’s database as of Q1 2022, 36 funds held a position in Molina Healthcare, Inc. (NYSE:MOH).
3. Nutanix, Inc. (NASDAQ:NTNX)
Number of Hedge Fund Holders: 29
Nutanix, Inc. (NASDAQ:NTNX) has plummeted 28.29% as of 11:24 AM ET after the San Jose, California-based provider of software-defined enterprise cloud services was downgraded from a Buy to a Neutral rating by Wamsi Mohan at Bank of America. The analyst also reduced the price target on Nutanix, Inc. (NASDAQ:NTNX) from $54 to $22. The firm posted its quarterly results after the closing bell yesterday and outperformed the revenue and annual contract value (ACV) billings for Q3 FY23 but missed free cash flow (FCF) estimates. Furthermore, Nutanix, Inc. (NASDAQ:NTNX) also provided a weak Q4 FY23 ACV billings, revenue, and FCF guidance and did not reiterate its overall FY23 targets. The analyst expressed his concern about the weakness in the enterprise cloud industry and the tougher macroeconomic outlook.
Nutanix, Inc. (NASDAQ:NTNX) was mentioned in the Q3 2021 investor letter of ClearBridge Investments.
“To make room for Netflix and better concentrate the Strategy in our highest-conviction names, we exited positions in software makers Nutanix. Nutanix, a leader in hyperconverged infrastructure (HCI) that enables storage, computing and networking to operate as a single platform, has successfully pivoted from a license to a subscription model and under new leadership has improved execution. While business fundamentals should remain healthy, we see more upside in our application software and Internet holdings.”
2. ProPetro Holding Corp. (NYSE:PUMP)
Number of Hedge Fund Holders: 27
ProPetro Holding Corp. (NYSE:PUMP) has slipped 0.16% as of 11:23 AM ET after the Midland, Texas-based oilfield services company was downgraded from an Overweight to an Underweight rating by Arun Jayaram at JPMorgan. The analyst downgraded ProPetro Holding Corp. (NYSE:PUMP) stock primarily because of its lower margins compared to its competitors. In Q1 2022, ProPetro Holding Corp. (NYSE:PUMP) reported revenue and EPS of $283 million and 20 cents, respectively, compared to the consensus estimates of $273.67 million and six cents.
As of Q1 2022, 27 elite funds held a stake in ProPetro Holding Corp. (NYSE:PUMP).
1. Huntington Bancshares Incorporated (NASDAQ:HBAN)
Number of Hedge Fund Holders: 26
Huntington Bancshares Incorporated (NASDAQ:HBAN) was downgraded from a Peer Perform to an Underperform rating by Bill Carache at Wolfe Research. The analyst also cut the price target on Huntington Bancshares Incorporated (NASDAQ:HBAN) from $15 to $11. Carache anticipates further multiple compression amongst the mid-cap banks based on the assumption that a recession is likely. As a result, he has taken a more cautious approach to Huntington Bancshares Incorporated (NASDAQ:HBAN) stock. On May 12, Huntington Bancshares Incorporated (NASDAQ:HBAN) acquired a business-to-consumer (B2C) payments fintech company, Torana, for an undisclosed amount. The digital payment solution offered by Torana will now launch as Huntington ChoicePay.
You can also take a peek at the 12 Best American Stocks To Buy in 2022 and 10 Best Micro-Cap Stocks to Buy According to Hedge Funds.
