In this article, we take a look at five stocks that are getting crushed today. If you want to take a look at some more stocks that are losing and the latest market situation, go to These 10 Stocks Are Getting Crushed Today.
5. State Street Corporation (NYSE:STT) has fallen 4.41% as of 1:15 PM ET after reports that the Massachusetts-based diversified financial services firm is considering the acquisition of Credit Suisse Group AG (CS) for CHF 9 ($9.22) per share. State Street Corporation (NYSE:STT) has declined to comment on this development and has said that it is focused on the acquisition of Brown Brothers Harriman’s Investors Services Business. The shares of Credit Suisse are hovering around a 20-year low after the firm revealed that it expects a loss in Q2 2022 from its Investment Banking segment due to the low level of issuance from the capital market along with the widening of credit spreads.
State Street Corporation (NYSE:STT) was held by 29 hedge funds at the end of Q1 2022. Harris Associates was the leading hedge fund investor in State Street Corporation (NYSE:STT) during the first quarter.
4. Carnival Corporation & plc (NYSE:CCL) has plummeted 4.83% as of 1:16 PM ET after the target price for the British-American cruise operator was reduced from $17 to $13 by Jamie Rollo at Morgan Stanley. The analyst maintained an Underweight rating on Carnival Corporation & plc (NYSE:CCL) stock. The company has added a significant amount of debt on its balance sheet and has also issued new shares, diluting the long-term prospects for shareholders. On the brighter side, Carnival Corporation & plc (NYSE:CCL) has announced the return of its ultra-luxury ship Seabourn for the first time since March 2020.
Of the 912 hedge funds in Insider Monkey’s database, 32 funds held a stake in Carnival Corporation & plc (NYSE:CCL).
3. Microsoft Corporation (NASDAQ:MSFT) has dipped 0.65% as of 1:16 PM ET because the Redmond, Washington-based tech giant is facing multiple negative developments today. Firstly, Microsoft Corporation (NASDAQ:MSFT) announced that it would significantly lower its presence in Russia but will continue to fulfill contractual obligations. The update is expected to impact 400 employees. Furthermore, Microsoft Corporation (NASDAQ:MSFT) parted ways with its virtual reality chief Alex Kipman after reports that he acted inappropriately in front of some female employees. There have been allegations that he watched virtual reality pornography in front of company employees.
Motiwala Capital discussed its stance on Microsoft Corporation (NASDAQ:MSFT) in its Q4 2021 investor letter. Here’s what the firm said:
“Microsoft (NASDAQ:MSFT) re-enters our portfolio after a long gap. MSFT sells enterprise and consumer software products as well as hardware products such as the Xbox video game console and Surface laptops. All business segments experienced double-digit revenue growth and earnings per share have compounded in the mid-double digits over the last 5 years. We believe MSFT continues this momentum in the years ahead.”
Microsoft Corporation (NASDAQ:MSFT) was held by 259 hedge funds as of Q1 2022.
2. Moody’s Corporation (NYSE:MCO) has declined 1.49% as of 1:16 PM ET after the New York-based credit rating agency was downgraded from an Overweight to a Neutral rating by Simon Clinch at Atlantic Equities. The analyst also reduced the price target on Moody’s Corporation (NYSE:MCO) from $370 to $298. Clinch used the S&P Global Inc. (NYSE:SPGI) decision to suspend its 2022 outlook as the basis for the downgrade. During the conferences conducted by both credit rating agencies last week, it became clearer that there is a significant weakness in global issuance.
Here’s what Qualivian Investment Partners said about Moody’s Corporation (NYSE:MCO) in its Q2 2021 investor letter:
“Moody’s: Revenue, operating profit margins, and EPS all exceeded expectations, and annual guidance for these items (and for free cash flow) was raised. In MIS (Moody’s Investors Service) which houses the traditional ratings business, the outlook for debt issuance was raised for the remainder of the year, while MA (Moody’s Analytics) also came in ahead of expectations. The company leveraged strong revenue growth with strong operating profit margin improvement of 200 bps, with EPS coming in $0.22 ahead of consensus estimates. Management alluded to having interesting opportunities in their M&A pipeline, which we will have to assess when the time comes, but Moody’s management team has been very effective at allocating capital in the past toward value-creating bolt-on acquisitions, especially in their Moody’s Analytics business, a key growth driver for the company.”
At the end of Q1 2022, Moody’s Corporation (NYSE:MCO) was held by 56 hedge funds.
1. Hanesbrands Inc. (NYSE:HBI) has crashed 2.49% as of 1:16 PM ET after the Winston-Salem, North Carolina-based apparel company was downgraded from Overweight to Equal Weight by Adrienne Yih at Barclays. The analyst sees the risk of excess wholesale inventory increasing as key customers raise their promotional activity and put in new orders conservatively. Yih thinks that the high level of inventory and the weak consumer demand will cause challenges for Hanesbrands Inc. (NYSE:HBI). The analyst concluded that the short-term risks outweigh the long-term benefits for Hanesbrands Inc. (NYSE:HBI).
Hanesbrands Inc. (NYSE:HBI) was held by 23 hedge funds as of Q1 2022.
You can also take a peek at the 10 Best Undervalued Dividend Stocks To Buy and 10 Best Recession Stocks To Buy.
