In this article, we will take a look at the 10 stocks getting crushed on Monday.
U.S. stocks inched up before the opening bell today. However, the gains couldn’t continue for long. All three major U.S. indices slipped by Monday afternoon. As of 01:02 PM ET, S&P 500 was down 0.84 percent, Dow Jones Industrial Average was negative 0.90 percent and Nasdaq Composite slid 0.18 percent.
The latest drop is partly attributed to a surge in U.S. Treasury yields this morning. Moreover, concerns related to further tightening of monetary policy from the U.S. central bank also triggered today’s sell-off.
If we look at the U.S. stock market, FedEx Corporation (NYSE:FDX), Micron Technology, Inc. (NASDAQ:MU) and Lyft, Inc. (NASDAQ:LYFT), were among the notable stocks that fell this morning.
Shares of Micron Technology, Inc. and Lyft, Inc. dropped after receiving price-target cuts from analysts. On the other hand, FedEx Corporation shares extended their downward movement on its recent sales miss and a weak outlook. Check out the complete article to see some other stocks getting crushed on Monday.
Photo by Ruben Sukatendel on Unsplash
10. IBEX Limited (NASDAQ:IBEX)
Number of Hedge Fund Holders: 2
Shares of IBEX Limited (NASDAQ:IBEX) turned red in the pre-market trading session today after Citi lowered its price target for the customer experience company from $20 per share to $18 per share. The research firm was moved by the company’s recent earnings miss.
Last week, IBEX Limited posted adjusted earnings of 42 cents per share for its fiscal fourth quarter, compared to 31 cents per share in the year-ago period. Revenue increased to $123.7 million, from $108.9 million in the corresponding period of 2021. The results were marginally below the consensus of 45 cents per share for earnings and $124.13 million for revenue.
Looking forward, IBEX Limited expects to generate revenue in the range of $124 – $127 million for the current quarter. The midpoint of the guidance represents a growth of 15.6 percent on a year-over-year basis.
Speaking on the results, CEO of IBEX Limited, Bob Dechant, said in a statement:
“Although we incurred costs associated with the transition in the quarter, we believe we are in a great position starting Q1 of FY23 to realize immediate and long-term benefits from this pivot.”
9. Immunovant, Inc. (NASDAQ:IMVT)
Number of Hedge Fund Holders: 11
Immunovant, Inc. (NASDAQ:IMVT) is next on the list of 10 stocks getting crushed on Monday. The stock fell more than seven percent this morning after UBS analyst Colin Bristow lowered his ratings for the clinical-stage biopharmaceutical company from “Buy” to “Neutral.”
Bristow was primarily moved by the absence of any significant growth catalyst in the near term. He also cut his price target for Immunovant, Inc. from $7 per share to $5 per share.
Like Immunovant, Inc., shares of FedEx Corporation, Micron Technology, Inc. and Lyft, Inc., also fell this morning.
8. Perella Weinberg Partners (NASDAQ:PWP)
Number of Hedge Fund Holders: 22
Shares of Perella Weinberg Partners (NASDAQ:PWP) stumbled nearly four percent in mid-day trading Monday after Keefe Bruyette downgraded the financial services company from “Outperform” to “Market Perform.”
Analyst Michael Brown referred to the sudden change in the company’s senior management. Perella Weinberg Partners today named its new CEO. However, Brown believes the announcement timing is inappropriate considering the ongoing market turmoil. He also cut his price target for Perella stock from $10 per share to $8 per share.
Perella Weinberg Partners announced in a press release today that Peter Weinberg plans to leave the position of CEO. The company added that its co-president Andrew Bednar would become the new chief executive after Weinberg’s exit in January.
7. Li Auto Inc. (NASDAQ:LI)
Number of Hedge Fund Holders: 28
Shares of Li Auto Inc. (NASDAQ:LI) slid nearly three percent before the opening bell today. The drop came after the Chinese electric vehicle (EV) maker trimmed its vehicle-delivery outlook for the third quarter, citing supply chain disruptions.
Li Auto Inc. now expects to deliver 25,500 units in the current quarter, below its previous guidance of 27,000 – 29,000 units. Nevertheless, the company said it is working with partners to overcome the supply chain challenges.
The resurgence of coronavirus cases has affected the growth of several Chinese stocks, including Li Auto Inc., this year. Beijing’s strict Covid-19 policies have disrupted the day-to-day operations across various industries. As a result, many had to cut their growth projections.
6. Tronox Holdings plc (NYSE:TROX)
Number of Hedge Fund Holders: 29
Tronox Holdings plc (NYSE:TROX) lowered its adjusted EBITDA outlook for the third quarter, citing weakening TiO2 sales volumes. As a result, its shares slipped over two percent before the opening bell on Monday. The stock is already down more than 50 percent on a year-to-date basis.
The titanium products maker now expects adjusted EBITDA in the range of $240 – $255 million for Q3. Previously, Tronox Holdings plc (NYSE:TROX) was looking for adjusted EBITDA between $275 – $295 million.
Tronox Holdings plc (NYSE:TROX) attributed the revised outlook to a weaker-than-expected demand in certain regions. The company also blamed soaring energy costs in Europe for hurting its operating income.
5. Lyft, Inc. (NASDAQ:LYFT)
Number of Hedge Fund Holders: 35
Shares of Lyft, Inc. plummeted to a nearly two-month low this morning after receiving a downgrade from UBS. The research firm reduced its ratings for the ride-sharing service from “Buy” to “Neutral,” citing a recent survey involving drivers using both Lyft and Uber.
The survey indicated drivers prefer Uber over Lyft as the Uber app offers greater reach, faster boarding process and better earnings opportunities. The research firm also cut its price target for Lyft, Inc. from $50 per share to $16 per share.
Earlier this year, Lyft, Inc. appeared in the first-quarter 2022 investor letter of investment management firm Rowan Street Capital LLC. Here’s what the firm said:
“Lyft (NASDAQ:LYFT): We sold Lyft in Q1 ’22 to fund the acquisitions of our 3 new positions as we’ve outlined. We had owned Lyft for a little less than 3 years and realized approximately 50% gain on the stock. The new companies we bought with the proceeds from the sale are significantly better businesses, in our view.”
4. Farfetch Limited (NYSE:FTCH)
Number of Hedge Fund Holders: 39
Shares of Farfetch Limited (NYSE:FTCH) slipped over three percent this morning after Citi issued a “Sell” rating for the online luxury fashion retail platform, citing ambiguities around its profitability.
Citi analyst Guido Lucarelli thinks intensifying competition in the e-commerce market would make it hard for companies, including Farfetch, to improve their margins. Lucarelli set a price target of $6 per share for Farfetch Limited, compared to the stock’s current trading price of around $8.
The latest coverage comes nearly a month after Farfetch Limited revised its operating income guidance for fiscal 2022. The company now looks to achieve break-even adjusted EBITDA for the full year, compared to its previous target of positive adjusted EBITDA.
3. Ally Financial Inc. (NYSE:ALLY)
Number of Hedge Fund Holders: 42
Shares of Ally Financial Inc. (NYSE:ALLY) moved down in pre-market trading Monday after Piper Sandler analyst Kevin Barker decreased his price target for the bank holding company from $34 per share to $31 per share.
Barker referred to a sharp surge in Fed funds and immense loan growth. He said these factors have significantly raised the funding costs for banks. Barker maintained an “Underweight” rating for Ally Financial Inc..
Meanwhile, investment management firm Oakmark Funds also discussed Ally Financial Inc. in its second-quarter 2022 investor letter, stating:
“As for Ally Financial, fears of a recession drove the stock price down more than 20% for the period, but business fundamentals have remained strong and the shares now trade for just a mid-single-digit multiple of current earnings. We believe today’s price ignores the funding cost improvements and well-capitalized nature of Ally’s balance sheet. We continue to own both investments given their significant discounts to our estimates of business value.”
2. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Holders: 63
Shares of FedEx Corporation continued their downward movement this morning, hitting a new 52-week low of $143.18. The drop is attributed to the company’s mixed results for Q1 and a disappointing outlook for the current quarter.
FedEx Corporation recently posted adjusted earnings of $3.44 per share for its fiscal first quarter, above the consensus of $3.35 per share. However, the quarterly revenue of $23.2 billion missed the expectations of $24.01 billion.
For the current quarter, FedEx Corporation guided for revenue in the range of $23.5 – $24 billion, below analysts’ average estimate of $24.05 billion.
1. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 69
Shares of Micron Technology, Inc. slipped over two percent in mid-day trading Monday after receiving a price-target cut from multiple research firms this morning. Evercore ISI reduced its price target for the semiconductor company from $85 per share to $75 per share. Evercore’s analyst C.J. Muse thinks Micron Technology, Inc. would post its financial results for the August quarter below expectations.
In addition, Susquehanna analyst Mehdi Hosseini also lowered his price target for Micron Technology, Inc. from $68 per share to $60 per share. These price-target cuts have come just ahead of Micron’s fiscal fourth-quarter results.
Micron Technology, Inc. is scheduled to report its Q4 earnings after the closing bell on Thursday, September 29, 2022. Analysts expect the company to earn $1.38 per share on revenue of $6.81 billion.
You can also take a peek at Best Battery Stocks To Buy and 10 Best Cyclical Stocks for Inflation.
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This article is originally published at Insider Monkey.
