In this article, we discuss the 5 stocks that recently received price-target cuts from analysts. If you want to check out some more stocks whose price targets were trimmed by analysts, go directly to Analysts Just Cut Price Targets for These 10 Stocks.
5. Nordstrom, Inc. (NYSE:JWN)
Number of Hedge Fund Holders: 31
Shares of Nordstrom, Inc. (NYSE:JWN) hit a new 52-week low of $18.25 on Thursday, August 25, 2022. The drop came after Barclays analyst Paul Kearney trimmed his price target for the luxury department store chain from $21 per share to $18 per share.
Kearney was moved by the company’s revised outlook for the second half and fading consumer demand. Nordstrom, Inc. (NYSE:JWN) recently announced its Q2 results. The company managed to surpass profit and sales expectations, but its performance was overshadowed by its updated full-year outlook.
Nordstrom, Inc. (NYSE:JWN) now expects adjusted earnings in the range of $2.30 – $2.60 per share and revenue growth between 5 – 7 percent for its fiscal 2022. Previously, it was looking for adjusted earnings of $3.20 – $3.50 per share and revenue growth of 6 – 8 percent.
Speaking on the results, CEO Erik Nordstrom said in a statement:
“While our quarterly results were consistent with our previous outlook, customer traffic and demand decelerated significantly beginning in late June, predominantly at Nordstrom Rack. We are adjusting our plans and taking action to navigate this dynamic in the short term, including aligning inventory and expenses to recent trends, and we remain confident in our ability to deliver on our long-term strategic and financial goals.”
4. Advance Auto Parts, Inc. (NYSE:AAP)
Number of Hedge Fund Holders: 33
RBC Capital trimmed its price target for Advance Auto Parts, Inc. (NYSE:AAP) from $217 per share to $199 per share on Thursday, August 25, 2022. RBC Capital analyst Steven Shemesh referred to the company’s lower-than-expected Q2 sales.
Shemesh now expects Advance Auto Parts, Inc. (NYSE:AAP) to report a full-year operating margin close to the low end of its outlook. Moreover, the analyst sees limited positive catalysts for the automotive aftermarket parts retailer in the near term.
Earlier this week, Advance Auto Parts, Inc. (NYSE:AAP) posted weak results for its fiscal second quarter, as higher fuel prices and record inflation hurt the demand for its products. The Raleigh-based company reported adjusted earnings of $3.74 per share, missing the consensus of $3.76 per share. Revenue inched up 0.6 percent to $2.7 billion, behind the expectations of $2.75 billion
Moreover, Advance Auto Parts, Inc. (NYSE:AAP) also lowered its full-year sales outlook to a range of $11 – $11.2 billion, from its earlier guidance between $11.2 – $11.5 billion. The updated outlook was below the consensus of $11.34 billion.
3. Macy’s, Inc. (NYSE:M)
Number of Hedge Fund Holders: 39
Shares of Macy’s, Inc. (NYSE:M) fell nearly four percent on Wednesday, August 24, 2022, after Citi analyst Paul Lejuez lowered his price target for the department stores operator from $23 per share to $21 per share.
The price-target cut came a day after Macy’s, Inc. (NYSE:M) slashed its profit outlook for the full year. Macy’s, Inc. (NYSE:M) now anticipates adjusted earnings in the range of $4 – $4.20 per share, down from its earlier guidance between $4.53 – $4.95 per share.
The revised outlook also overshadowed Macy’s better-than-expected Q2 results. Macy’s, Inc. (NYSE:M) reported adjusted earnings of $1 per share, topping estimates of 86 cents. Revenue increased to $5.6 billion, while analysts were looking for $5.49 billion.
Speaking on the results, CEO Jeff Gennette said:
“During the second quarter, we delivered solid results, despite the challenging environment. Our teams have consistently responded to the dynamic landscape with disciplined, data-driven actions to ensure the health and stability of our business. We believe that we are well positioned to respond to changing consumer behaviors.”
2. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 49
Shares of Dell Technologies Inc. (NYSE:DELL) turned red in the pre-market trading session on Friday, August 26, 2022. The drop came after Barclays trimmed its price target for the Texas-based tech company from $54 per share to $49 per share.
On Thursday, Dell Technologies Inc. (NYSE:DELL) delivered mixed Q2 results and a weak sales outlook for Q3. The company reported adjusted earnings of $1.68 per share, better than the consensus of $1.64 per share. On the downside, the quarterly revenue of $26.4 billion missed analysts’ average estimate of $26.5 billion.
Moving forward, Dell Technologies Inc. (NYSE:DELL) expects to generate revenue in the range of $23.8 – $25 billion for the current quarter, below the consensus of $26.34 billion.
1. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 63
Shares of Marvell Technology, Inc. (NASDAQ:MRVL) slid nearly three percent before the opening bell on Friday, August 26, 2022. The drop came after KeyBanc analyst John Vinh slashed his price target for the datacenter semiconductor manufacturer from $90 per share to $75 per share.
The latest price-target cut came a day after Marvell Technology, Inc. (NASDAQ:MRVL) issued a weak sales outlook for its fiscal third quarter. The company expects revenue of about $1.56 billion for the current quarter, below analysts’ average estimate of $1.58 billion.
Marvell Technology, Inc. (NASDAQ:MRVL) issued the outlook along with its fiscal second-quarter results. The California-based company reported adjusted earnings of 57 cents per share on revenue of $1.517 billion. On the other hand, analysts expected Marvell Technology, Inc. (NASDAQ:MRVL) to earn 56 cents per share on revenue of $1.52 billion.
Speaking on the results, CEO Matt Murphy said in a statement:
“Looking ahead, we expect sequential revenue growth to accelerate in the fourth quarter as supply constraints begin to ease. We believe we are well positioned to continue to benefit from our favorable end market exposure tied to strong secular growth trends and significant expected upcoming revenue contributions from a number of Marvell-specific product ramps.”
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