Nike Inc (NKE) Down After Earnings Report, Plus 4 Other Tumbling Stocks

With the U.S dollar index up for the fourth consecutive day and oil prices trending lower, U.S stocks are slightly down this morning. The dollar index was up by approximately 0.5% this morning, while oil prices fell by more than 2%, putting pressure on the market. Amid the general slump, some stocks have registered large declines for various reasons. Let’s find out why Michaels Companies Inc (NASDAQ:MIK), Nike Inc (NYSE:NKE), Goldcorp Inc. (USA) (NYSE:GG), Sunedison Inc (NYSE:SUNE), and Pinnacle Foods Inc (NYSE:PF) are all getting slammed this morning.

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Michaels Companies Inc (NASDAQ:MIK) is down slightly this morning after the company announced that certain shareholders are looking to offload 17 million shares. The company itself is set to acquire only 2 million of those shares, using cash on hand. Michaels Companies Inc (NASDAQ:MIK) has been on a roll lately, spurred by better-than-expected fourth quarter results. The arts and crafts specialty retailer posted a profit of $0.87 per share on the back of $1.68 billion in revenue, surpassing analysts’ expectations of $1.65 billion in revenue and earnings of $0.84 per share. Jonathon Jacobson‘s Highfields Capital Management is betting big on the stock, having reported ownership of 8.95 million shares of it in its latest 13F filing.

Shares of Nike Inc (NYSE:NKE) are down by more than 4% so far today, despite the company beating market expectations for the third quarter of fiscal year 2016. While analysts had projected revenue of $8.20 billion and earnings of $0.49 per share for the athletic equipment and apparel company, Nike posted a profit of $0.55 per share on the back of $8.03 billion in revenue. What upset investors was the company’s weak outlook for future orders. Nike said future orders increased by 16%, below analysts’ expectations of 17% growth, which was interpreted as a post-holiday slowdown in consumer spending. Investors were also disappointed by Nike’s earnings outlook, given that it is an Olympic year, as the company said that it expects sales growth in the low single digits. Hedge funds are bullish on Nike Inc (NYSE:NKE), as the number of firms with long positions in the stock rose to 63 at the end of December, from 59 a quarter earlier.

Goldcorp Inc. (USA) (NYSE:GG) is down by 6% this morning as gold futures continue their fall. Gold for April delivery is currently trading around the $1,218 per ounce level, down by 2.5% today. As chances of a further interest rate increase by the Federal Reserve in the short term are slim, investors are switching back to stocks and trimming or closing their gold positions. A stronger dollar has also helped slow down the recent surge in gold prices, as the metal became more expensive for foreign investors. Jim Simons‘ Renaissance Technologies reported a 125% increase in its holding of Goldcorp Inc. (USA) (NYSE:GG) to 2.21 million shares as of the end of the fourth quarter, while First Eagle Investment Management reduced its exposure to the stock, having indicated ownership of 39.5 million shares in its latest 13F filing, down by 8% over the quarter.

Two more of the day’s trending stocks are discussed on the next page.

Having tanked by more than 25% yesterday, Sunedison Inc (NYSE:SUNE) opened lower this morning and continues to trade in the red, currently down by roughly 8%. Investors rushed for the exits yesterday after news emerged that the troubled solar company was in negotiations with certain debt holders in order to finance a debtor-in-possession facility. Such a type of financing is usually employed by companies undergoing a restructuring under Chapter 11 bankruptcy. This debt is senior to existing debt, equity and other claims. In simple terms, this indicates that SunEdison is basically out of cash. The worst performing stock in 2015, Sunedison Inc (NYSE:SUNE) plunged by more than 95% during the year. That led many hedge funds to abandon the stock, with long positions in it dropping to 50 at the end of 2015 from 80 at the end of 2014. Billionaire David Einhorn recently went activist on SunEdison and managed to get a seat on the company’s board of directors. The solar company’s management has also agreed to his demand not to issue any new shares over the next two years without a “supermajority vote” from the board.

Shares of Pinnacle Foods Inc (NYSE:PF) are down by more than 10% mid-morning after news emerged that the company’s CEO will depart. Having run Pinnacle Foods for approximately seven years, Robert Gamgort will leave the company at the end of April to head Keurig Green Mountain Inc (NASDAQ:GMCR), a seller of coffee machines that was acquired by JAB Holding Co earlier this year. Pinnacle’s board of directors has announced that it will look for a replacement both within and outside the company. Since the start of the year the company’s stock has been trending up, having advanced by 10% before today’s plunge. Hedge funds sought to distance themselves from the stock during the fourth quarter, with the number of funds invested in it having dropped to 27 at the end of December from 37 a quarter earlier. Contrary to the trend, Eric W. Mandelblatt is bullish on Pinnacle Foods Inc (NYSE:PF), having increased his fund’s stake by 5% during the quarter. According to its latest 13F filing, Soroban Capital Partners holds a little over 5.61 million shares of Pinnacle Foods.

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