In this article, we discuss the 5 stocks receiving downgrades from analysts. If you want to see more such stocks on the list, go directly to Analysts on Wall Street Lower Ratings for These 10 Stocks.
05. Federal Realty Investment Trust (NYSE:FRT)
Price Reaction after the Downgrade: -2.18 (-2.21%)
Federal Realty Investment Trust (NYSE:FRT) is a leading real estate company specializing in high-quality retail properties in major coastal markets from Washington, D.C., to Boston, San Francisco, and Los Angeles. Founded in 1962, they aim to achieve sustainable growth by investing in communities with high retail demand. They create vibrant mixed-use neighborhoods, such as Santana Row, Pike & Rose, and Assembly Row, offering shopping, dining, living, and workspaces. With 102 properties, 3,300 tenants, 26 million square feet, and 3,100 residential units, Federal Realty Investment Trust (NYSE:FRT) has an unmatched 56-year track record of increasing shareholder dividends. On September 18, Mizuho Securities downgraded Federal Realty Investment Trust (NYSE:FRT) from “Buy” to “Neutral” while reducing the price target from $105 to $101. Following Mizuho Securities’ downgrade of Federal Realty Investment Trust (NYSE:FRT), there has been a price reaction in the market. The stock is currently trading at $96.69, reflecting a decrease of 2.2%. This price movement suggests that investors may adjust their positions in response to the downgrade and revised price target.
04. Planet Fitness, Inc. (NYSE:PLNT)
Price Reaction after the Downgrade: -1.79 (-3.56%)
Jefferies analysts, led by Randal Konik, have made several adjustments to their assessment of Planet Fitness, Inc. (NYSE:PLNT) stock. They downgraded the rating from “Buy” to “Hold,” significantly reduced the price target from $90 to $56, and revised their estimates downward in a report issued on September 18. Their rationale for these changes includes various factors, such as a leadership change, which they believe will likely impact the company’s growth potential. As a result of these adjustments, there has been a notable price reaction in the market. The stock is currently trading at $48.50, reflecting a decrease of 3.6%. This price movement indicates that investors are responding to the revised outlook and concerns outlined by Jefferies analysts regarding Planet Fitness, Inc. (NYSE:PLNT) future performance.
Alger Weatherbie Specialized Growth Fund made the following comment about Planet Fitness, Inc. (NYSE:PLNT) in its Q2 2023 investor letter:
“Planet Fitness, Inc. (NYSE:PLNT) is one of the largest and fastest-growing franchisors and operators of fitness clubs in the United States. with over 2,000 clubs (95% franchised) and approximately 18 million members. The company offers high-quality, approachable fitness experiences at a compelling value, targeting the approximately 80% of the U.S. population who currently do not belong to a fitness club. Additionally, Planet Fitness supplies its franchisees with fitness equipment. During the period, the company reported weaker-than-expected fiscal first quarter results, as revenues and earnings fell below consensus estimates. The company noted that despite strong membership growth, equipment revenue fell due to lower new placements. Further, the company cited higher-than-expected operating expenses weighing on quarterly earnings. Despite the near-term weakness, management reaffirmed full-year revenue guidance and noted that the company is still on track to meet its 3-year target of opening approximately 600 additional stores. We believe the company’s differentiated business model is well positioned to continue gaining market share, given its momentum in new memberships and focus on targeting underserved consumers with an attractive value proposition within the fitness industry.”
03. V.F. Corporation (NYSE:VFC)
Price Reaction after the Downgrade: -0.83 (-4.57%)
On September 18, V.F. Corporation (NYSE:VFC) shares experienced a decline of 4.5% following a downgrade by Piper Sandler. The downgrade involved a shift from an “Overweight” rating to a “Neutral” rating, accompanied by a reduction in the price target from $28 to $20. This downgrade and the corresponding price target adjustment have contributed to the decrease in V.F. Corporation (NYSE:VFC) stock price, indicating that investors are reacting to the change in the company’s outlook and valuation as assessed by Piper Sandler.
Diamond Hill Large Cap Strategy made the following comment about V.F. Corporation (NYSE:VFC) in its Q4 2022 investor letter:
“Apparel and footwear company V.F. Corporation (NYSE:VFC)’s stock declined in Q4 after management lowered guidance based on weaker-than-expected demand in North America, higher promotions and elevated wholesale order cancellations. The company also announced a CEO transition, effective immediately. Following these developments, we sold our shares in favor of higher conviction ideas.”
02. OceanFirst Financial Corp. (NASDAQ:OCFC)
Price Reaction after the Downgrade: -0.98 (-6.12%)
Founded in 1902, OceanFirst Financial Corp. (NASDAQ:OCFC) is based in Red Bank, New Jersey. It is the bank holding company for OceanFirst Bank N.A., which provides community banking services. Their services include accepting various types of deposits from retail, government, and business customers and offering a range of loans, including residential mortgages, commercial real estate loans, and consumer loans. Additionally, they invest in various securities and provide services like bankcard and trust services. On September 18, OceanFirst Financial Corp. (NASDAQ:OCFC) has been downgraded to “Neutral” from “Buy” by DA Davidson analyst Manuel Navas. Additionally, the price target for OceanFirst Financial Corp. (NASDAQ:OCFC) has been lowered from $21 to $17. The downgrade and price target adjustment are attributed to concerns about the expectation of “higher for longer” interest rates. As of the latest update, the current price of OceanFirst Financial Corp. (NASDAQ:OCFC) stands at $15.02, reflecting a decrease of 6.1% in response to the recent downgrade.
01. PTC Therapeutics, Inc. (NASDAQ:PTCT)
Price Reaction after the Downgrade: -1.98 (-7.54%)
On September 18, Citi downgraded PTC Therapeutics, Inc. (NASDAQ:PTCT) to “Neutral” from “Buy” and adjusted its price target from $55 to $29. The downgrade was made due to a recent European Medicines Agency advisory committee recommendation. This recommendation suggests that conditional approval for PTC Therapeutics, Inc. (NASDAQ:PTCT) Duchenne muscular dystrophy drug, Translarna, should not be converted into full approval. Citi expressed concerns about the negative opinion from EU regulators, which they believe will limit opportunities for near-term upside. They anticipate that the stock will remain within a relatively narrow trading range, albeit with some volatility, until there is more clarity regarding the impact of this decision on PTC Therapeutics, Inc. (NASDAQ:PTCT) Duchenne muscular dystrophy franchise. Following Citi’s downgrade of PTC Therapeutics, Inc. (NASDAQ:PTCT) to “Neutral” and the adjustment of the price target to $29 from $55, there has been a significant price reaction in the market. The stock is currently trading at $24.28, representing a decline of 7.5%. This price movement reflects the impact of the downgrade and the concerns raised by Citi regarding the European Medicines Agency advisory committee’s recommendation regarding Translarna’s approval status. Investors are reacting to the news with a notable stock value decrease.
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