In this article, we present the list of the 10 stocks that Jim Cramer recommends to sell. You can skip our comprehensive analysis of Jim Cramer’s history, investment philosophy, and hedge fund performance, and go directly to Jim Cramer Recommends Selling These 5 Stocks.
Last week, Jim Cramer bemoaned the huge selloff that is rattling the sock markets since Russia attacked Ukraine. Cramer said that Russia is a nuclear power and given the “unhinged” behavior of Putin, the United States is abstaining from a strong reaction to avoid giving the Russian President a chance to use the nuclear weapons. Cramer has also been very active on his Twitter account lately. He tweeted that the market would have gained value on the back of the latest upbeat jobs report but the Ukraine situation kept hammering the stocks.
Markets are off to a bad start on Monday as well. S&P 500, Dow and Nasdaq fell over 1% at session lows in early trading as conflict in Ukraine rages on and oil hits new highs.
Our Methodology
Jim Cramer recently talked about several stocks in his CNBC program Mad Money, including American Airlines Group Inc (NASDAQ:AAL), salesforce.com, inc. (NYSE:CRM), Airbnb Inc (NASDAQ:ABNB) and AMC Entertainment Holdings Inc (NYSE:AMC). For this article we used the Mad Money stock screener and selected the stocks on which Cramer has a sell rating.
Jim Cramer Recommends Selling These 10 Stocks
10. Allbirds, Inc. (NASDAQ:BIRD)
Number of Hedge Fund Holders: 10
Jim Cramer has a Sell rating on Allbirds, Inc. (NASDAQ:BIRD) as of March 4. Allbirds, Inc. (NASDAQ:BIRD) sells footwear and apparel. Cramer thinks that “too many naïve investors” started buying this stock “without any regard for the price simply because they liked the brand.” Cramer believes it’s hard to tell when the stock would be able to “find a floor.” Allbirds, Inc. (NASDAQ:BIRD) stock fell as much as 9% last month even after it reported a strong earnings report. Allbirds, Inc. (NASDAQ:BIRD) however expects its first-quarter revenue to come in the range of $60 million to $62 million versus the consensus estimate of $63.7 million.
In addition to Allbirds, Cramer also talked about American Airlines Group Inc (NASDAQ:AAL), salesforce.com, inc. (NYSE:CRM), Airbnb Inc (NASDAQ:ABNB) and AMC Entertainment Holdings Inc (NYSE:AMC) in his recent programs.
9. DigitalBridge Group, Inc. (NYSE:DBRG)
Number of Hedge Fund Holders: 30
DigitalBridge Group, Inc. (NYSE:DBRG) is a Florida-based private equity firm that invests in cell towers, data centers, fiber, small cells, and connectivity infrastructure. DigitalBridge Group, Inc. (NYSE:DBRG) is down about 5% over the last 30 days. DigitalBridge Group, Inc. (NYSE:DBRG) recently said that it entered into privately negotiated exchange agreements with certain noteholders of the issuer’s 5.75% Exchangeable Senior Notes due 2025 wherein noteholders have agreed to exchange about $60 million in principal amount of the outstanding 2025 Notes for a combination of shares of the DigitalBridge Group, Inc. (NYSE:DBRG)‘s class A common stock and a fixed cash payment.
Jim Cramer is bearish on DigitalBridge. In his program on CNBC, Cramer said that he won’t back the tower business “in any way, shape or form.”
“There are too many of those,” Cramer said.
Clark Street Value, an investment management firm, published its fourth-quarter 2021 investor letter and mentioned DigitalBridge Group, Inc. (NYSE:DBRG). Here‘s what the fund said:
“With DigitalBridge (DBRG), there’s continued M&A in the digital infrastructure space and its seems like CEO Marc Ganzi can raise unlimited amounts of money at this point, so I’m content to just to go along for the ride.”
8. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 30
Cramer has been bearish on NIO Inc. (NYSE:NIO) for quite some time now and the Mad Money stock screener shows that he still has a Sell rating on the Chinese EV stock as of March 1. Back in January, Cramer had said that he won’t be recommending “any of the Chinese stocks.”
“In particular, I don’t like that stock [NIO Inc. (NYSE:NIO)]. I just feel like there are people who want to speculate all the time on China. This is a different kind of China than what we’re used to. It is a communist country that does not seem to favor capitalist development anymore,” Cramer said about NIO Inc. (NYSE:NIO) and China.
NIO Inc. (NYSE:NIO) shareholders are indeed taking losses. Over the past six months, NIO Inc. (NYSE:NIO) shares have lost over half of their value. Insider Monkey’s data of 924 hedge funds as of the fourth quarter shows that 30 funds had stakes in the NIO Inc. (NYSE:NIO) as of the end of the first quarter.
7. Progress Software Corporation (NASDAQ:PRGS)
Number of Hedge Fund Holders: 17
Jim Cramer is bearish on Progress Software Corporation (NASDAQ:PRGS) because he believes that there are “so many” software companies out there.
“I just can’t own it unless you think you can get a takeover,” Cramer said in his program on CNBC.
In the fourth quarter, Massachusetts-based Progress Software Corporation (NASDAQ:PRGS) posted an adjusted EPS of $0.92, beating the estimates by $0.18. Revenue in the period jumped 8.6% to reach $140.1 million, beating the Street’s outlook by $4.3 million.
Jim Simons’ Renaissance Technologies is one of the leading stakeholders of Progress Software Corporation (NASDAQ:PRGS) as of the end of 2021. The fund has a $65 million stake in Progress Software Corporation (NASDAQ:PRGS). Overall, 17 hedge funds in our database had stakes in Progress Software as of the end of the fourth quarter.
6. Rent-A-Center, Inc. (NASDAQ:RCII)
Number of Hedge Fund Holders: 24
Rent-A-Center, Inc. (NASDAQ:RCII) is down 55% over the last six months. Jim Cramer has a Sell rating on the stock because Rent-A-Center, Inc. (NASDAQ:RCII) posted a weaker-than-expected fourth-quarter earnings report.
Cramer said on March 1 that Rent-A-Center, Inc. (NASDAQ:RCII) had a “terrible quarter.”
“I wish I could be more positive, but it was a very bad quarter,” said Cramer.
Rent-A-Center, Inc. (NASDAQ:RCII) expects Fy’22 revenue to come in between $4.45 billion to $4.60 billion versus the consensus estimate of $5.27 billion. Rent-A-Center, Inc. (NASDAQ:RCII) expects its EPS to fall between $4.50 to $5 versus the estimates of $7.04.
Rent-A-Center, Inc. (NASDAQ:RCII) also saw a decline in hedge fund sentiment of late. The stock was in 24 hedge fund portfolios at the end of the fourth quarter, compared to 28 funds in the previous quarter, according to the database of 924 funds tracked by Insider Monkey.
In addition to RCII, American Airlines Group Inc (NASDAQ:AAL), salesforce.com, inc. (NYSE:CRM), Airbnb Inc (NASDAQ:ABNB) and AMC Entertainment Holdings Inc (NYSE:AMC) are also on Cramer’s watchlist.
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Disclosure: None. Jim Cramer Recommends Selling These 10 Stocks is originally published on Insider Monkey.
