Why Are These 4 Stocks Having Such a Poor Trading Day?

With crude futures in the green for the first time in 2016 and the S&P 500 barely in the red this morning, shares of Express Scripts Holding Company (NASDAQ:ESRX), Qorvo Inc (NASDAQ:QRVO), SUPERVALU INC. (NYSE:SVU) and BorgWarner Inc. (NYSE:BWA) are falling hard. Let’s find out why investors are selling these equities today as well as what relevant hedge funds have to say about these stocks.

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First on the list is Express Scripts Holding Company (NASDAQ:ESRX), whose stock has plummeted by 6.5% after Bloomberg reported that the company has received a threat from Anthem Inc (NYSE:ANTM) to take its services elsewhere unless the latter can deliver $3 billion-a-year in drug cost savings. Moreover, Anthem’s CEO has not confirmed the renewal of the firm’s contract with Express Scripts when it expires in 2019.

Express Scripts Holding Company (NASDAQ:ESRX) lost popularity in the third quarter of 2015, as out of the 730 funds that we track, 58 funds held shares of the company on September 30, amassing 6.3% of the float, down from 62 funds on June 30. Bob Peck and Andy Raab’s FPR Partners was the largest shareholder of Express Scripts in our system, with 4.87 million shares valued at $394.6 million at the end of September.

Qorvo Inc (NASDAQ:QRVO)’s shares are down by around 9% today. Although there is no particular news behind the move, the company was subject to various price reductions because of an expected weaker demand for iPhones.  For example, analysts at Northland Securities cut their price target to $55 per share from $75 per share, while analysts at DA Davidson trimmed their target price on the stock to $75 from $80. Nonetheless, many analysts have maintained a “Buy” rating on it.

Among the funds we follow, 27 reported long positions in Qorvo Inc (NASDAQ:QRVO) as of the end of September, down by seven funds from a quarter earlier. Richard Barrera‘s Roystone Capital Partners reported holding a $124.3 million position in the stock as of that time, comprising 5.9% of its 13F portfolio.

We look into why the shares of SUPERVALU and BorgWarner are sliding on the next page.

SUPERVALU INC. (NYSE:SVU) is another company that is losing ground today, on the back of the company reporting its financial results for the third-quarter of fiscal year 2016, ended December 5. The company posted adjusted EPS of $0.16, in-line with the Street’s estimates while its revenue of $4.11 billion was lower than the $4.23 billion figure reported a year earlier and below the consensus estimate by $50 million.

SUPERVALU INC. (NYSE:SVU) gained popularity among the investors that we track in the third quarter. 40 funds held shares of the company on September 30, up by two funds over the quarter, and they amassed 20.9% of the float. Among them, Conan Laughlin‘s North Tide Capital was the largest shareholder, reporting ownership of 15.0 million SUPERVALU shares in its latest 13F filing.

Finally, also among the big losers today is BorgWarner Inc. (NYSE:BWA). After having updated its guidance, the stock has plummeted by 10%. The fourth-quarter guidance of $0.75-to-$0.79 in EPS was a little above analyst expectations, but the guidance of $3.11-to-$3.32 in EPS for the full 2016 fiscal year was below the $3.41 Capital IQ Consensus Estimate, precipitating today’s decline.

During the third-quarter, BorgWarner Inc. (NYSE:BWA) also registered an increase in popularity among the funds that we track, with 28 investors holding long positions at the end of September, versus 26 funds at the end of June. Ric Dillon‘s Diamond Hill Capital was the largest shareholder among those, holding 6.19 million shares valued at $257.48 million at the end of September.

Disclosure: None