In this article, we discuss the 5 stocks that are falling today. If you want to check out some other companies losing value on Wednesday, go directly to These 10 Stocks are Falling Today.
5. Altimmune, Inc. (NASDAQ:ALT)
Number of Hedge Fund Holders: 27
Altimmune, Inc. (NASDAQ:ALT) announced positive results from its Phase 1b trial of pemvidutide this morning. Yet, its shares took a deep dive after the opening bell on Wednesday, losing more than 40 percent of their value.
The drop came even after Altimmune, Inc. (NASDAQ:ALT) reported that it achieved its key targets in patients with non-alcoholic fatty liver disorder (NAFLD). According to Altimmune, Inc. (NASDAQ:ALT), the study also achieved the secondary goal of weight loss in all three groups.
Pipe Sandler said it was “surprised” to see the market reacting negatively to ALT’s results. The investment firm said the reaction was perhaps due to the 4.7% weight-loss reported in the study which came in below Street estimates.
Discussing the trial’s results, CEO of Altimmune, Inc. (NASDAQ:ALT), Vipin K. Garg, said in a statement:
“We are pleased with the results of this trial, including the extent of liver fat and serum ALT reductions. Weight loss was within our target range, and good tolerability was observed without the need for dose titration.”
4. Nucor Corporation (NYSE:NUE)
Number of Hedge Fund Holders: 32
Shares of Nucor Corporation (NYSE:NUE) fell nearly six percent in the pre-market trading session today. The drop came after the steel producer issued a weak profit outlook for its fiscal third quarter.
Nucor Corporation (NYSE:NUE) guided for earnings in the range of $6.30 – $6.40 per share, compared to $7.28 per share in the corresponding period of 2021. The guidance also missed the consensus of $7.56 per share.
The company said profit from its steel mills business is expected to drop sharply in the third quarter on a sequential basis. Nucor Corporation (NYSE:NUE) blamed lower shipping volumes and margin contraction for the weakness.
3. CSX Corporation (NASDAQ:CSX)
Number of Hedge Fund Holders: 63
Shares of CSX Corporation (NASDAQ:CSX) dropped over three percent in mid-day trading Wednesday after Bernstein lowered its ratings for the rail-based freight transportation provider from “Outperform” to “Market perform.”
Bernstein analyst David Vernon referred to the macro challenges that could impact the top-line growth and margins of railroad companies, including CSX Corporation (NASDAQ:CSX).
At the same time, Vernon acknowledged the decent valuations and improving volume trends in the railroad industry. He issued a price target of $32 per share for CSX Corporation (NASDAQ:CSX), compared to the stock’s current trading price of around $31.
2. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 65
Shares of Union Pacific Corporation (NYSE:UNP) declined nearly five percent this morning ahead of a potential strike from railroad workers.
The U.S. railroad employees have been negotiating with the leading railroad companies, including Union Pacific Corporation (NYSE:UNP), over a new union contract. However, they haven’t reached a settlement as of now.
The railroad worker unions are calling for a strike if no agreement is reached by the weekend. The railroad companies, including Union Pacific Corporation (NYSE:UNP), are already grappling with staff shortages and a potential strike could significantly hurt their business.
1. Block, Inc. (NYSE:SQ)
Number of Hedge Fund Holders: 72
Shares of Block, Inc. (NYSE:SQ) slid nearly four percent in pre-market trading Wednesday after Evercore ISI downgraded the financial services company from “Outperform” to “Underperform.”
Evercore ISI analyst David Togut pointed towards increasing challenges for Block’s seller and buy now, pay later (BNPL) segments. Togut believes intensifying competition and decelerating macroeconomic growth would weigh on these segments. He also trimmed his price target for Block, Inc. (NYSE:SQ) from $120 per share to $55 per share.
Separately, Block, Inc. (NYSE:SQ) also appeared in the second-quarter 2022 investor letter of asset management firm Baron Funds. Here’s what the firm said:
“Block, Inc. provides point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. Shares fell due to mixed quarterly results with more modest growth in the Seller business offsetting strength in Cash App. While integration of recently acquired Afterpay is progressing well and credit metrics remain healthy, the buy-now-pay-later business slowed due to greater competitive intensity. We continue to own the stock due to Block’s long runway for growth, sustainable competitive advantages, and unique corporate culture.”
You can also take a peek at Best Cybersecurity Stocks to Buy Now and 10 Best Cyclical Stocks for Inflation.
