Why These Five Stocks Are Plummeting As Markets Rise?

NewLink Genetics’ Cancer Drug Fails To Meet Endpoint

Shares of NewLink Genetics Corp (NASDAQ:NLNK) are trading down by roughly 32.5% on Tuesday, driven by the announcement of disappointing results from its pancreatic cancer drug study. According to the data, the company’s immunotherapy (algenpantucel L) did not show any statistical difference when compared to the standard-of-care treatment – without being supplemented by algenpantucel L.

NewLink Genetics Corp (NASDAQ:NLNK) counted of 15 hedge fund supporters in our database by the end of 2015. Among them was Jean-Marie Eveillard’s First Eagle Investment Management, which declared holding 1.75 million shares of the company by March 31. This makes it the largest shareholder of record to date.

InvenSense Suffers From iPhone Shortfall

Another big decliner on Tuesday is InvenSense Inc (NYSE:INVN), a small-cap tech company, whose stock has lost more than 14% since the opening bell. The tumble seemed to be a response to the company reporting mixed results for the fourth quarter of fiscal 2016. Its EPS of $0.02 were in line with consensus, but the revenue of $79.53 million, which was (for the first time ever) 19.9% lower year-on-year, missed the estimates by $370,000, and guidance disappointed investors. Analysts have attributed the decline in sales to Apple Inc. (NASDAQ:AAPL)’s iPhone shortfall, which has been widely discussed recently, especially after the company’s sales miss a few days ago.

At the end of the fourth quarter, InvenSense Inc (NYSE:INVN) saw 20 funds from our database holding shares. One of the largest stakes was that of Joel Greenblatt’s Gotham Asset Management, which last disclosed ownership of 2.55 million shares, worth more than $26 million as of December 31.

MannKind Investors Take Double-Blow

Finally, there’s MannKind Corporation (NASDAQ:MNKD), whose stock has lost around 25% on the back of first-quarter earnings miss and an equity offering. On Monday afternoon, the company reported a net loss of $0.06 per share, missing the Street’s consensus by $0.01. However, the stock could have been affected due to the announcement of an equity offering for select institutional investors. The company said it will offer up to 48.54 million shares of stock and warrants to acquire stock, exercisable at $1.50 per warrant.

As of the end of the fourth quarter, 11 funds in our database reported long positions in MannKind Corporation (NASDAQ:MNKD). While hedge fund support was not overly high – but quite decent for a small cap, several funds became very bullish during the quarter, including D E Shaw, which reported a position of 1.06 million shares, up by more than 6,000% quarter-over-quarter.

 Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.