Why Are These Five Stocks Sinking Today?

The US stock market is trading slightly in the green territory amid positive news from China and following solid employment figures, but shares of American Eagle Outfitters (NYSE:AEO), Barracuda Networks Inc (NYSE:CUDA), Collegium Pharmaceutical Inc (NASDAQ:COLL), Kinross Gold Corporation (USA) (NYSE:KGC) and Barrick Gold Corporation (USA) (NYSE:ABX) are trading significantly lower than their yesterday’s closing prices. So let’s take a look at the news surrounding these stocks today and see the hedge fund sentiment towards them.

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The first on the list is American Eagle Outfitters (NYSE:AEO), whose stock has plummeted by 15% after the company announced that fourth-quarter same-store sales rose by 4%, which is below the consensus estimate of 4.9%. Moreover, the retailer expects to report earnings per share between $0.40 and $0.42 for the fourth quarter, which is below the consensus estimate of $0.43. American Eagle Outfitters (NYSE:AEO) has gained popularity in the third quarter and, out of the 730 funds that we track, 40 funds held shares of the company on September 30, amassing 16.2% of the float. Chuck Royce’s Royce & Associates has the most valuable position in American Eagle Outfitters, worth $71.23 million at the end of September.

Barracuda Networks Inc (NYSE:CUDA)’s shares are down by around 33% today on the back of the company reporting its financial results for the third quarter of fiscal 2016, ended November 30. The company posted adjusted EPS of $0.07, missing the estimates by $0.01, while its revenue of $80.1 million was higher than the $70.4 million figure reported a year earlier, but below the consensus estimate of $84.43 million. Following the results, the company was downgraded by six analysts, and other four lowered their price targets. Among the funds we follow, 14 reported long positions in Barracuda Networks Inc (NYSE:CUDA) as of the end of September, down by two funds from a quarter earlier. George McCabe‘s Portolan Capital Management reported holding 512,866 shares, worth $7.99 million, in its latest 13F filing.

Collegium Pharmaceutical Inc (NASDAQ:COLL) is another company that is losing ground today on the back of a $55 million equity offer. The company prices its public offering of 2.75 million shares at a price of $20.00 per share (before expenses). Collegium Pharmaceutical Inc (NASDAQ:COLL) also gained popularity in the third quarter and, out of the 730 funds that we track, 10 funds held shares on September 30, amassing 26.9% of the float.

Finally, among the losers today are Kinross Gold Corporation (USA) (NYSE:KGC) and Barrick Gold Corporation (USA) (NYSE:ABX), whose shares are currently down by 4% and 3%, respectively, on the back of a fall in gold prices. The U.S. economy gained about 292,000 jobs in December, above market expectations. The news, combined with positive news from China, gave investors more confidence in the stock market and sent the precious metal trading lower by around 0.4% on the COMEX today.

During the third quarter, Kinross Gold Corporation (USA) (NYSE:KGC) registered a decrease in popularity among the funds we track, with 21 investors holding long positions at the end of September, versus 23 funds a quarter earlier, amassing around 7.5% of its outstanding stock. David Iben‘s Kopernik Global Investors is the largest shareholder with 30.98 million shares, valued at $53.28 million at the end of September.

Barrick Gold Corporation (USA) (NYSE:ABX) also witnessed a slight decrease in popularity, with 40 investors holding long positions at the end of September, compared to 42 funds in the previous quarter. Among them, First Eagle Investment Management was the largest shareholder, reporting 27.85 million shares in its latest 13F filing.

Disclosure: None