In this article, we discuss the 5 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 10 Stocks in September.
5. Matson, Inc. (NYSE:MATX)
Number of Hedge Fund Holders: 25
Matson, Inc. (NYSE:MATX) provides ocean transportation and logistics 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 he thought the company was going to come under some “pressure” in the coming months as there was a sense that “these shipping companies make a little too much money”.
On August 16, Wolfe Research analyst Jacob Lacks initiated coverage of Matson, Inc. (NYSE:MATX) stock with an Underperform rating and a price target of $80, noting the firm had been one of the biggest beneficiaries of the increase in ocean rates over the past few years.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Millennium Management is a leading shareholder in Matson, Inc. (NYSE:MATX), with 380,352 shares worth more than $27 million.
In its Q2 2022 investor letter, Meridian Funds, an asset management firm, highlighted a few stocks and Matson, Inc. (NYSE:MATX) was one of them. Here is what the fund said:
“Matson, Inc. (NYSE:MATX) is a US-based ocean and logistics company with a leading position in Pacific shipping that provides a vital lifeline to Hawaii, Alaska, and Guam as well as premium and expedited service from China to the US. Given its unique position and terminal assets, Matson has an unparalleled speed advantage over other ocean transportation companies. This speed advantage has been highly valuable to customers given supply chain disruptions which has helped improve inventory velocity. Although the company recently reported strong quarterly earnings growth, its stock declined on signs of slower shipping demand due to rising inventories within the consumer channel and improving port congestion. Given these dynamics, overall container rates have begun to recede from the robust levels experienced in 2021 but still remain at levels that are nearly 4x that of pre-pandemic levels. Although we expect container rates to continue to normalize, we believe the company’s unique speed advantage and increased service capacity between Asia and the U.S. could help offset some of these headwinds. Matson continues to generate strong free cash flow and has proven to be a strong allocator of capital, including increasing dividend payouts for shareholders and buying back stock. During the period, we trimmed our position in the company.”
4. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 26
Plug Power Inc. (NASDAQ:PLUG) delivers end-to-end clean hydrogen and zero-emissions fuel cell solutions to various sectors. During the Lightning Round of his show on September 15, Cramer outlined his bearish stance on the company while answering a viewer question, saying that he thought that the better way to play the market on hydrogen and cleaner energy was Linde, instead of Plug Power.
On August 26, Craig-Hallum analyst Eric Stine maintained a Buy rating on Plug Power Inc. (NASDAQ:PLUG) stock and raised the price target to $38 from $31, appreciating the hydrogen supply agreement of the firm with tech giant Amazon.
At the end of the second quarter of 2022, 26 hedge funds in the database of Insider Monkey held stakes worth $259 million in Plug Power Inc. (NASDAQ:PLUG), compared to 33 in the preceding quarter worth $509.8 million.
3. OneMain Holdings, Inc. (NYSE:OMF)
Number of Hedge Fund Holders: 28
OneMain Holdings, Inc. (NYSE:OMF), a financial service holding company, engages in the consumer finance and insurance businesses. During the Lightning Round of his show on September 12, Cramer outlined his bearish stance on the company while answering a viewer question, saying that he thought the company had “more exposure to a downturn than almost any other stock” and that it was “the Dallas Cowboys of financials”.
On August 15, RBC Capital analyst Kenneth Lee maintained an Outperform rating on OneMain Holdings, Inc. (NYSE:OMF) stock and lowered the firm’s price target to $51 from $62, noting that the downside for the firm was manageable as it had capital generation potential.
At the end of the second quarter of 2022, 28 hedge funds in the database of Insider Monkey held stakes worth $621.5 million in OneMain Holdings, Inc. (NYSE:OMF), compared to 37 in the previous quarter worth $866 million.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and OneMain Holdings, Inc. (NYSE:OMF) was one of them. Here is what the fund said:
“Similar to the energy sector, the financials sector is also trading at very depressed multiples relative to the market. While the sector’s strong fundamentals received some recognition in 2021, it was rewarded with substantially lower valuations than it should have had. Despite earnings growing over 30% and exceeding the overall market’s, financial stock multiples stayed flat and are currently selling at a discount of roughly 9x forward earnings. (…read more)
2. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 38
Roblox Corporation (NYSE:RBLX) develops and operates an online entertainment platform. 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 thought the company was losing money and he was not in the habit of recommending stocks that were money losers for investors.
On September 16, Needham analyst Bernie McTernan maintained a Buy rating on Roblox Corporation (NYSE:RBLX) stock and lowered the price target to $53 from $55, noting the firm has a path for user and engagement growth globally.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Renaissance Technologies is a leading shareholder in Roblox Corporation (NYSE:RBLX), with 11.6 million shares worth more than $380 million.
In its Q4 2021 investor letter, Tao Value, an asset management firm, highlighted a few stocks and Roblox Corporation (NYSE:RBLX) was one of them. Here is what the fund said:
“Roblox (RBLX) got significant more attention from both institutional & retail investors after Facebook announced to rename itself as Meta Platforms. I believe the price appreciation is largely attributed to the increased attention. On business side, Roblox rolled out a few successful music events and also partnered with Netflix on testing long-form media consumption in virtual world. Apple in its iOS 14.5 rolled out an impactful change for digital advertising landscape by requiring all apps to ask users to “opt in”.
1. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 66
Occidental Petroleum Corporation (NYSE:OXY), together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties. During the Lightning Round of his show on September 15, Cramer outlined his bearish stance on the company while answering a viewer question, saying that although he had a lot of respect for Warren Buffett, who is a “terrific” investor, he just “can not recommend this stock”.
On July 26, investment advisory Barclays maintained an Overweight rating on Occidental Petroleum Corporation (NYSE:OXY) stock and lowered the price target to $79 from $84. Analyst Jeanine Wai issued the ratings update.
At the end of the second quarter of 2022, 66 hedge funds in the database of Insider Monkey held stakes worth $13.8 billion in Occidental Petroleum Corporation (NYSE:OXY), compared to 67 in the previous quarter worth $12.6 billion.
In its Q2 2022 investor letter, Smead Capital Management, an asset management firm, highlighted a few stocks and Occidental Petroleum Corporation (NYSE:OXY) was one of them. Here is what the fund said:
“For the quarter, our best-performing stocks were Continental Resources (CLR), Merck (MRK) and Occidental Petroleum Corporation (NYSE:OXY). Despite a steep sell-off in June in the oil and gas stocks, two of our oil stocks made the quarterly list.
If you are wondering how we are outperforming the S&P 500 Index in the first half of the year, look no further than our top three performers. Occidental Petroleum (OXY), Continental Resources (CLR) and Conoco Phillips (COP) soared in value and were barely represented in the S&P 500 Index. To quote Jerry Jones, owner of the Dallas Cowboys, “We are in the first quarter on higher energy prices!””
You can also take a peek at Forget Tesla (TSLA): 10 Cheap EV Stocks to Buy Now and 15 Best Consumer Discretionary Stocks to Buy Now.
