In this article, we will discuss some of the notable stocks declining today. To take a look at some more stocks that are losing, go to Stocks to Watch on Thursday: Top 5 Losers.
The US equity market is swinging between the red and green as investors are analyzing the Federal Reserve’s last policy-setting minutes of the meeting as hawkish. The Federal Reserve has indicated that it will intervene to control inflation. The S&P 500 Index, the Dow Jones Industrial Average (DJIA), and the NASDAQ Composite Index are all down 0.46%, 0.48%, and 0.95%, respectively, as of 12:25 PM ET. Meanwhile, the 10-year Treasury yield is hovering around a three-year high of 2.637%. Economists at Bank of America are expecting a 50 bps increase in interest rate in the next two to three months. Amongst the notable stocks declining today are Twitter, Inc. (NASDAQ:TWTR), Wayfair Inc. (NYSE:W), and Ford Motor Company (NYSE:F).
Let’s look at why these stocks are losing today and discuss how hedge funds are positioned in them.
10. Rite Aid Corporation (NYSE:RAD) is down 23.4% as of 12:25 PM ET after the Camp Hill, Pennsylvania-based pharmaceutical retailer was downgraded from a Hold to a Sell rating at Deutsche Bank. The price target was revised from $16 to $1. The target price reflects a steep potential downside of over 88% from the last closing stock price of $8.44. The Deutsche Bank analyst highlighted that Rite Aid Corporation (NYSE:RAD) would not be able to meet the initial guidance provided for FY23.
Rite Aid Corporation (NYSE:RAD) will report its Q4 FY22 results next week, focusing on the outlook for FY23. Previously, the company had revealed its target of generating over $430 million in EBITDA. The report highlighted that any guidance of less than $400 million would reflect no value with no real returns for shareholders.
Rite Aid Corporation (NYSE:RAD) was under the ownership of 17 hedge funds as of Q4 2021. Citadel Investment Group was the leading investor in the company, with a stake worth over $16.8 million.
9. SoFi Technologies, Inc. (NASDAQ:SOFI) has plummeted 12.1% as of 12:25 PM ET. The San Francisco, California-based online personal finance company, slashed its FY22 outlook after US President Joe Biden extended the pause in student loan repayment by four months to August 31. SoFi Technologies, Inc. (NASDAQ:SOFI) now anticipates net revenue of $1.47 billion as opposed to the analysts’ estimates of $1.55 billion and the prior outlook of $1.57 billion. Moreover, SoFi Technologies, Inc. (NASDAQ:SOFI) has lowered the adjusted EBITDA guidance from $180 million to $100 million.
Of the 924 hedge funds in Insider Monkey’s database, SoFi Technologies, Inc. (NASDAQ:SOFI) was held by 24 hedge funds as of Q4 2021.
8. Vapotherm, Inc. (NYSE:VAPO) has lost 30.5% of its value as of 12:28 PM ET after the company received a double downgrade from an Overweight to an Underweight rating by Jason Bednar and Joseph Downing at Piper Sandler. Meanwhile, the price target on Vapotherm, Inc. (NYSE:VAPO) was reduced by over 65% to $8, as opposed to $23 previously. The target price has been revised following significant reductions to revenue and profitability forecasts for the company. The downgrade has come after Vapotherm, Inc. (NYSE:VAPO) reported preliminary revenue of $20.5 million to $21.5 million, compared to the consensus estimate of $25.79 million.
At the end of Q4 2021, 12 hedge funds reported owning a stake in Vapotherm, Inc. (NYSE:VAPO). Hound Partners was long over 1.4 million shares of Vapotherm, Inc. (NYSE:VAPO) during the fourth quarter.
7. Shell plc (NYSE:SHEL) has fallen 1.7% as of 12:26 PM ET after the Anglo-Dutch integrated oil and gas company announced that it would write off around $4 to $5 billion from the value of its assets during the first quarter of 2022. Shell plc (NYSE:SHEL) is taking into account the impact of pulling out of Russia following the start of the conflict between Russia and Ukraine in February 2022. Previously, Shell plc (NYSE:SHEL) had anticipated the write-off to be around $3.4 billion. Shell plc (NYSE:SHEL) was in the news in March 2022 after it was revealed that it had bought a heavily discounted consignment of Russian crude oil. Following this development, the company was forced to issue an apology.
Out of the 924 hedge funds covered by Insider Monkey, 41 funds held a stake in Shell plc (NYSE:SHEL) as of Q4 2021.
6. Houlihan Lokey, Inc. (NYSE:HLI) is down 3.2% as of 12:26 PM ET after the Los Angeles, California-based investment bank was downgraded from a Neutral to an Underweight rating by Jeffery Harte at Piper Sandler. The analyst also slashed the target price on Houlihan Lokey, Inc. (NYSE:HLI) from $92 to $76, reflecting a potential downside of over 10.5% from yesterday’s closing stock price.
Houlihan Lokey, Inc. (NYSE:HLI) was held by 21 hedge funds as of Q4 2021, up from 18 in the preceding quarter.
In addition to Houlihan Lokey, Inc. (NYSE:HLI), stocks such as Twitter, Inc. (NASDAQ:TWTR), Wayfair Inc. (NYSE:W), and Ford Motor Company (NYSE:F) are amongst the top losers today.
Click to continue reading and see Stocks to Watch on Thursday: Top 5 Losers.
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Disclose. None. Stocks to Watch on Thursday: Top 10 Losers is originally published on Insider Monkey.
