These 5 Companies Just Cut Their Guidance

3. PacWest Bancorp (NASDAQ:PACW)

Number of Hedge Fund Holders: 35

PacWest Bancorp (NASDAQ:PACW) was founded in 1999 and is headquartered in Beverly Hills, California. It operates as the bank holding company for Pacific Western Bank. On July 21, the stock dropped by about 8% after the company reported a below consensus Q2 EPS and displayed no optimism on the H2 results. PacWest Bancorp (NASDAQ:PACW) expects loan growth in H2 to slow down on the back of higher interest rates and decelerating economic growth. For Q3, consensus EPS estimate for PacWest Bancorp (NASDAQ:PACW) stands at $1.07, down 8.93% year over year, while revenue estimate came in at $368.20 million, up 11.20% on a year over year basis.

Among the hedge funds tracked by Insider Monkey, 35 funds were bullish on PacWest Bancorp (NASDAQ:PACW) at the end of Q1 2022, up from 33 funds in the preceding quarter. Amy Minella’s Cardinal Capital is the largest shareholder of the company, with almost 4.5 million shares worth $193.5 million.

Here is what Palm Valley Capital Fund has to say about D.R. Horton, Inc. (NYSE:DHI) in its Q2 2022 investor letter:

“Vidler Water was acquired by homebuilder D.R. Horton (NYSE:DHI) during the second quarter for $15.75 per share, a modest 19% premium to the 90-day volume weighted average price. D.R. Horton can use Vidler’s water rights to satisfy government requirements to have water resources available before it breaks ground on new housing developments in Nevada. The takeover price was below our valuation, but D.R. Horton was the only real buyer who stepped up to the plate for Vidler’s assets. The deal appears to have leaked early, since the stock surged in the weeks before the announcement.”