In this article, we will discuss 10 stocks losing ground on Wednesday. To take a look at some more stocks that are declining, go to Top 5 Losers on Wednesday.
US stocks are declining on Wednesday as weaker-than-expected results from major retailers are causing downward pressure on the overall markets. Investors are also processing the Federal Reserve’s intent of controlling rising inflation through an interest rate hike. As of 11:56 AM ET, the S&P 500 Index, the Dow 30 Index, and the NASDAQ Composite Index are all down 2.84%, 2.41%, and 3.29%, respectively. Some popular stocks losing today include Walmart, Inc. (NYSE:WMT), Twitter, Inc. (NASDAQ:TWTR), and Doximity, Inc. (NYSE:DOCS).
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Let’s look at why these stocks are declining today and discuss how hedge funds are positioned in them.
10. Target Corporation (NYSE:TGT) has lost 24.11% of its value as of 11:50 AM ET after the Minneapolis, Minnesota-based big-box retailer revealed that its quarterly bottom line was adversely impacted by supply chain disruptions, increase in fuel costs, and lower than anticipated sales of discretionary goods like bicycles and TV. This caused Target Corporation (NYSE:TGT) to miss its EPS estimate for the quarter and report the biggest one-day decline in the stock price in over three decades. Target Corporation (NYSE:TGT) maintained its mid-single-digit revenue growth guidance but did not share an EPS forecast for this year after falling to a new 52-week low during trading today.
Out of the 924 hedge funds covered by Insider Monkey, 49 funds held a stake in Target Corporation (NYSE:TGT) as of Q4 2021.
9. Lowe’s Companies, Inc (NYSE:LOW) is 4.75% in the red as of 11:50 AM ET after the North Carolina-based home improvement retailer failed to surpass top-line estimates for the quarter as cooler spring weather caused people to abandon outdoor do-it-yourself (DIY) projects. Lowe’s Companies, Inc (NYSE:LOW) saw its revenue decline by 3.1% YoY to $23.66 billion, missing consensus estimates by $100 million. However, the company maintained its annual revenue guidance of $97 billion to $99 billion. The results reported by Lowe’s Companies are in contrast to what Home Depot, Inc. (NYSE:HD) reported as the Atlanta, Georgia-based home improvement retailer surpassed revenue and earnings estimate for the quarter and attributed it to a rise in projects for housing contractors.
Pershing Square was the leading hedge fund investor in Lowe’s Companies, Inc (NYSE:LOW) during Q1 2022. As of Q4 2021, 72 hedge funds held a stake in Lowe’s Companies, Inc (NYSE:LOW), with a combined value of $6.87 billion.
8. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) has fallen 4.56% as of 11:50 AM ET after the Boston, Massachusetts-based biotech corporation involved in the development of a cell programming platform was downgraded from a Neutral to an Underperform rating by Derik de Bruin at Bank of America. The analyst also lowered the target price on Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) to $3 from $6. The revised target price shows a slim potential upside of 9.74%% from the last closing price. Bruin does not see upside potential in the short and medium-term, but he remains positive on the long-term outlook of the platform offered by Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) and the synthetic biology industry.
As of Q4 2021, Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) was held by 30 hedge funds.
7. Tesla, Inc. (NASDAQ:TSLA) has plummeted 3.87% as of 11:52 AM ET after the target price of the Austin, Texas-based electric vehicle (EV) company was slashed from $1,260 to $1,035 by Alexander Potter at Piper Sandler. The analyst slashed his estimates to reflect the impact of COVID-related lockdowns in China. Potter added that the operational prowess of Tesla, Inc. (NASDAQ:TSLA) was on complete display during Q1 2022, but it will worsen during Q2. The opening of new facilities in Texas and Germany will drag down margins, and Tesla, Inc. (NASDAQ:TSLA) will face another headwind due to the lockdown in Shanghai. However, the analyst termed the stock as a “cornerstone holding” in any “advanced mobility” portfolio.
According to Insider Monkey’s proprietary data, 91 hedge funds held a stake in Tesla, Inc. (NASDAQ:TSLA) as of Q4 2021.
6. Comstock Resources, Inc. (NYSE:CRK) has slid 6.77% as of 11:52 AM ET after the Frisco, Texas-based oil and gas exploration and production (E&P) firm was downgraded from a Neutral to an Underweight rating by Mark Lear at Piper Sandler. Lear slashed the target price on Comstock Resources, Inc. (NYSE:CRK) from $19 to $16. The analyst anticipates the company’s projected returns, cash flow, and capital return to be severely impacted by the cost inflation and rising interest rates.
Overall, Comstock Resources, Inc. (NYSE:CRK) was held by 19 hedge funds as of Q4 2021. D E Shaw was the leading hedge fund investor in Comstock Resources, Inc. (NYSE:CRK) during Q1 2022.
In addition to Comstock Resources, Inc. (NYSE:CRK), some other notable losers today include Walmart, Inc. (NYSE:WMT), Twitter, Inc. (NASDAQ:TWTR), and Doximity, Inc. (NYSE:DOCS).
Click to continue reading and see the Top 5 Losers on Wednesday.
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Disclose. None. Top 10 Losers on Wednesday is originally published on Insider Monkey.
