In this article, we discuss the 10 stocks that Jim Cramer is bearish on in September. If you want to read about some more stocks that Cramer is bearish on, go directly to Jim Cramer Is Bearish on These 5 Stocks in September.
Jim Cramer, the former hedge fund manager and present host of Mad Money on CNBC, has been making headlines in the finance world after he predicted back in early August that “inflation has peaked” and investors were in a state of “nirvana” over the fact. In the weeks since, new inflation data has been released by the United States government, which shows that the Consumer Price Index, the benchmark inflation measure, had actually risen in August after being flat for the month of July, sending the stock market into a meltdown.
Cramer, who has backed prominent growth names like Amazon.com, Inc. (NASDAQ:AMZN), Sea Limited (NYSE:SE), and Tesla, Inc. (NASDAQ:TSLA) to battle it out during this crisis, recently doubled down on his stance of not selling during this panic, telling news platform CNBC that it was important for long-term investors to keep their focus on the “big picture” but also clarifying that he did not blame the investors for panicking since he thought that “non-commodity inflation has yet to peak”.
He also added that his decision not to sell did not necessarily mean that a bounce may directly be in the offing, but that the markets were fast-moving into a “no-win” position. Cramer warned that if the inflation data had, hypothetically, come in slightly better than expected, bearish investors would have found a way to spin the narrative towards a focus on whether the Fed was being too aggressive with price pressures already easing. The former hedge fund manager noted that he was choosing to look past this “false dichotomy”.
Our Methodology
These were picked keeping in mind the latest calls that Cramer made on these equities on his Mad Money show aired by news platform CNBC. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
Jim Cramer Is Bearish on These Stocks
10. Nikola Corporation (NASDAQ:NKLA)
Number of Hedge Fund Holders: 13
Nikola Corporation (NASDAQ:NKLA) operates as a technology innovator and integrator that works to develop energy and transportation solutions. During the Lightning Round of his show on September 16, Cramer outlined his bearish stance on the company while answering a viewer question, saying that he thought that the stock was “lethal” and he did not want to own it in the present macro environment.
On September 14, BTIG analyst Gregory Lewis upgraded Nikola Corporation (NASDAQ:NKLA) stock to Buy from Neutral with a price target of $12, noting that there was potential for higher demand for green hydrogen, driven by increasing wind and solar power generation.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Antara Capital is a leading shareholder in Nikola Corporation (NASDAQ:NKLA), with 25.5 million shares worth more than $121 million.
Just like Amazon.com, Inc. (NASDAQ:AMZN), Sea Limited (NYSE:SE), and Tesla, Inc. (NASDAQ:TSLA), Nikola Corporation (NASDAQ:NKLA) is one of the stocks that hedge funds are monitoring.
9. Luminar Technologies, Inc. (NASDAQ:LAZR)
Number of Hedge Fund Holders: 17
Luminar Technologies, Inc. (NASDAQ:LAZR), an automotive technology company, provides sensor technologies and software. During the Lightning Round of his show on September 14, Cramer outlined his bearish stance on the company while answering a viewer question, saying that the company “was not making money” and he was not in favor of firms that do not make money for their investors.
On August 10, Baird analyst Tristan Gerra maintained an Outperform rating on Luminar Technologies, Inc. (NASDAQ:LAZR) stock and lowered the price target to $15 from $30, noting the firm was on track to meet or beat milestones for the year.
At the end of the second quarter of 2022, 17 hedge funds in the database of Insider Monkey held stakes worth $52.9 million in Luminar Technologies, Inc. (NASDAQ:LAZR), compared to 16 in the preceding quarter worth $133.8 million.
8. SoFi Technologies, Inc. (NASDAQ:SOFI)
Number of Hedge Fund Holders: 22
SoFi Technologies, Inc. (NASDAQ:SOFI) provides digital financial services. During the Lightning Round of his show on September 13, Cramer outlined his bearish stance on the company while answering a viewer question, saying that the company “was just a world of hurt”. However, he also said investors could also “roll with it” since the stock was cheap at nearly $5 per share.
On September 14, Bank of America analyst Mihir Bhatia upgraded SoFi Technologies, Inc. (NASDAQ:SOFI) stock to Buy from Neutral and raised the price target to $9 from $8, noting that the risk/reward offered by the stock seemed attractive.
Among the hedge funds being tracked by Insider Monkey, California-based investment firm Silver Lake Partners is a leading shareholder in SoFi Technologies, Inc. (NASDAQ:SOFI), with 31 million shares worth more than $164 million.
In its Q4 2021 investor letter, Altron Capital Management, an asset management firm, highlighted a few stocks and SoFi Technologies, Inc. (NASDAQ:SOFI) was one of them. Here is what the fund said:
“We have been building our position in SoFi Technologies, Inc. (NASDAQ:SOFI) over the last two quarters but have not yet written about our thesis until now. SoFi is an online financial technology company that started off refinancing student loans. This segment remains a big part of the company’s business, but they have more recently expanded their products to offer an entire suite of financial services including personal banking, investing, and credit. While their collection of products is still evolving and not yet complete, we believe the company is in the early stages of its inflection. The company nearly doubled its member count over the past year and is growing 50%+ despite its loan refinancing business taking a hit due to the COVID-related loan moratorium. Furthermore, the company is close to obtaining a bank charter through its acquisition of Golden Pacific Bancorp, a community bank based in Sacramento. A bank charter would allow SoFi to take in its own customer deposits, lowering its cost of capital and expanding the company’s breadth of financial offerings.
While SoFi is not the only online banking platform out there, we believe it could take a decent share of the financial services market. Banking is a notoriously sticky business, as the inconvenience and hassle of switching banks prevent consumers from jumping to competitors regardless of cost. This is one of the reasons that traditional banks are one of the few businesses to have truly been disrupted by technology. We think SoFi is well on its way to changing that and creating a new paradigm for the future of consumer banking and financial services.
The factors that will ultimately drive consumer adoption of online banking are cost and convenience. In our opinion, SoFi is best positioned to drive consumers away from the legacy banking model. Their one-stop-shop approach for financial services and their lack of a brick-and-mortar branch network to maintain may eventually propel them into becoming one of the larger players in the banking industry in the United States…read more)
7. Stellantis N.V. (NYSE:STLA)
Number of Hedge Fund Holders: 25
Stellantis N.V. (NYSE:STLA) engages in the design, engineering, manufacturing, distribution, and sale of automobiles and parts. During the Lightning Round of his show on September 13, Cramer outlined his bearish stance on the company while answering a viewer question, saying that although the firm was a good automaker, he would advise investors to stick with companies like Ford that were “terrific” and attractively priced.
On September 6, Jefferies analyst Philippe Houchois maintained a Buy rating on Stellantis N.V. (NYSE:STLA) stock with a price target of $18, noting that there was confidence around the operating performance of the firm.
At the end of the second quarter of 2022, 25 hedge funds in the database of Insider Monkey held stakes worth $714.6 million in Stellantis N.V. (NYSE:STLA), compared to 29 in the preceding quarter worth $1.2 billion.
6. Sunnova Energy International Inc. (NYSE:NOVA)
Number of Hedge Fund Holders: 25
Sunnova Energy International Inc. (NYSE:NOVA) provides residential energy services in the United States. During the Lightning Round of his show on September 14, Cramer outlined his bearish stance on the company while answering a viewer question, saying that he would not recommend investors to buy this stock at the current prices because the energy firm was recently “losing money”.
On August 8, JPMorgan analyst Mark Strouse maintained an Overweight rating on Sunnova Energy International Inc. (NYSE:NOVA) stock and raised the price target to $54 from $43, noting the firm would benefit from the Inflation Reduction Act.
Among the hedge funds being tracked by Insider Monkey, Minneapolis-based investment firm Whitebox Advisors is a leading shareholder in Sunnova Energy International Inc. (NYSE:NOVA), with 110 million shares worth more than $85.9 million.
Along with Amazon.com, Inc. (NASDAQ:AMZN), Sea Limited (NYSE:SE), and Tesla, Inc. (NASDAQ:TSLA), Sunnova Energy International Inc. (NYSE:NOVA) is one of the stocks on the radar of elite investors.
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Disclosure. None. Jim Cramer Is Bearish on These 10 Stocks in September is originally published on Insider Monkey.
