Stone Energy, Skechers, Supreme Industries, and More: What is Going On With These Falling Stocks?

It’s another calm day on Wall Street as the NASDAQ index is slightly in the green and the Dow Jois down by just half a percent.

While the broader markets may be calm, shares of five stocks, Stone Energy Corporation (NYSE:SGY), Skechers USA Inc (NYSE:SKX), Twilio Inc (NYSE:TWLO), La-Z-Boy Incorporated (NYSE:LZB), and Supreme Industries, Inc. (NYSEMKT:STS), are deep in the red. Let’s find out why traders are selling each stock and determine how the smart money investors from our database are positioned towards them.

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Stone Energy Corporation (NYSE:SGY) shares have fallen by 43% after the company announced entry into a comprehensive restructuring support agreement with senior noteholders. According to the press release,

“The RSA [restructuing support agreement] contemplates that the Company will file for voluntary relief under chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in a United States Bankruptcy Court (the “Bankruptcy Court”) on or before December 9, 2016 to implement the Plan in accordance with the term sheet annexed to the RSA.”

The company added that “existing common stockholders of Stone will receive their pro rata share of 5% of the common stock in reorganized Stone and warrants for up to 15% of the post-petition equity exercisable upon the Company reaching certain benchmarks pursuant to the terms of the proposed new warrants.” In addition, Stone Energy has agreed to sell Appalachia assets to an affiliate of Tug Hill for $360 million in cash. Of the 749 funds we track, eight funds owned $11.1 million worth of Stone Energy Corporation (NYSE:SGY)’s stock, which accounted for 16.10% of the float on June 30, versus 15 funds and $2.62 million respectively on March 31.

Skechers USA Inc (NYSE:SKX) is 17% in the red after the company reported third-quarter EPS of $0.42 on revenue of $942.4 million, missing the consensus estimates by $0.05 and $11.98 million, respectively. Comparable store sales went up by 3% on the year and gross profit inched up by 40 basis points to 45.6%. The company’s international wholesale sales advanced by 18%, to help Skechers grow its sales overall by 10.1% year-over-year. Traders are likely selling Skechers because they were expecting more robust growth. The number of funds from our database with holdings in Skechers USA Inc (NYSE:SKX) fell by five quarter-over-quarter to 27 at the end of June.

On the next page, we will find out why Twilio, La-Z-Boy Incorporated, and Supreme Industries are deep in the red.

Twilio Inc (NYSE:TWLO) is down 6.3% after after the company announced the pricing of its follow-on offering of 7 million shares of class A common stock at $40 per share. In addition, the Twilio has granted underwriters a 30-day option to purchase up to 1.05 million additional shares at the same price. Twilio went public in June and nine funds tracked by us were long Twilio Inc (NYSE:TWLO) at the end of the second quarter.

La-Z-Boy Incorporated (NYSE:LZB) is 7% in the red after it commented on anticipated results for the fiscal 2017 second quarter. Specifically, the company anticipates sales for the period to be 1% to 2.5% lower than last year’s second-quarter sales of $382.9 million due to weaker demand throughout the retail home furnishings sector. La-Z-Boy also expects EPS to be in the range of $0.37-$0.39. The number of funds from our database with holdings in La-Z-Boy Incorporated (NYSE:LZB) fell by two quarter-over-quarter to 19 at the end of June.

Traders have punished Supreme Industries, Inc. (NYSEMKT:STS) to the tune of 18.88% after the company reported its third-quarter results. Although EPS of $0.29 was $0.03 per share ahead of estimates and revenue of $74.8 million beat the expectations by $4.8 million, the company’s order backlog came in at $58.1 million, down from the $74.4 million at the end of last year’s same quarter. The company also said that “industry-wide growth in commercial truck sales decelerated during the summer months, suggesting moderate order activity through year end”. That statement may have spooked some traders. Jim Simons’ Renaissance Technologies raised its stake in Supreme Industries, Inc. (NYSEMKT:STS) by 61% to over 528,000 shares in the second quarter.

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