Investing

6 Top Companies That Destroyed Shareholders Last Week

Chris Lange

Published: March 13, 2016 10:10 am

Last Updated: January 13, 2020 12:01 pm

Both the Dow Jones Industrial Average and S&P 500 felt a huge downward push in the first two months of this year, but now they look to be on the road to recovery. Although stocks now are beginning to make a comeback, some are still slowing that recovery and punishing their shareholders.

We have picked out some companies that punished shareholders last week. While these were not the five biggest absolute losers of the week, among the active stocks these all issued or had news that pushed shares down. 24/7 Wall St. has included their recent trading history, as well as the 52-week trading range and the consensus analyst price target.

Performance Sports Group

Following an update to its fiscal third-quarter and fiscal full-year financial results, the bears mauled Performance Sports Group Ltd. (NYSE: PSG) in Tuesday’s session. Whenever companies adjust guidance ahead of an earnings report, usually we can expect some serious movement, and considering the adjustments, this is not surprising for PSG.

For the third quarter, PSG expects a net loss of $0.29 per share, or a net loss of $0.16 per share on a constant currency basis. The same period of last year had $0.13 in earnings per share (EPS). The consensus estimate calls for $0.09 per share loss for the third quarter. In terms of revenue, PSG now expects $125 million, or $130 million on a constant currency basis. The third quarter from last year had $137.75 million in revenue. The consensus estimate is $136.15 million.

Last week, the stock dropped roughly 53.5%. Shares of ended the week at $4.25, with a consensus price target of $11.81 and a 52-week trading range of $2.80 to $21.72.

Burned in Monday’s regular trading session, Celldex Therapeutics Inc. (NASDAQ: CLDX) ultimately saw its shares fall more than 50%. The reason for this? The independent Data Safety and Monitoring Board has determined that Celldex’s late stage Rintega study will not reach statistical significance for overall survival in patients with minimal residual disease. Celldex needs to figure out something quick because the stock has been under fire for a while now, and it’s starting to look like a race to zero. So far in 2016, the stock was down nearly 50% before this move on Monday. Over the past 52 weeks, the stock is down about 90%.

Last week, the stock dropped 58%. Celldex shares closed at $3.48 on Friday, with a consensus price target of $14.27 and a 52-week range of $3.42 to $32.82.

Oclaro

On Wednesday, Oclaro Inc. (NASDAQ: OCLR) saw its share price dive on news that the U.S. Department of Commerce plans to put import restrictions on one of its biggest customers, ZTE. The reason for these restrictions is that ZTE has violated trade sanctions with Iran, according to U.S. regulators. So the Commerce Department is also placing restrictions on U.S. companies that happen to supply ZTE, including Oclaro.

The stock dropped 13% over the course of the week, and the shares ended the week at $4.21, within a 52-week range of $1.61 to $5.07. The consensus price target is $5.25.

Shake Shack

After the markets closed on Monday, Shake Shack Inc. (NYSE: SHAK) released its fourth-quarter earnings report, and analysts and investors alike did not enjoy the results. The stock sold off about 10% early in Tuesday’s session, and one key analyst cut its ratings despite relatively decent earnings. The company had $0.08 in EPS on $51 million in revenue, compared to the consensus estimates from Thomson Reuters of $0.07 in EPS on revenue of $50.44 million. In the same period of the previous year, it posted a net loss of $0.01 per share on $34.77 million in revenue.

The problem? Even after the stock dropped 10% or so, Shake Shack still trades at roughly 100 times consensus 2016 EPS and about 80 times 2017 consensus EPS. Because this quarter wasn’t absolutely phenomenal, wherein the earnings start catching up to the price and lowering the company’s price-to-earnings (P/E) multiple, it is no doubt that investors are abandoning ship and dropping the share price.

In the past week, the stock declined 17%. The shares were changing hands at $34.58 as Friday’s session came to a close, within a 52-week range of $30.00 to $96.75. The consensus price target is $38.86.

J2 Global

J2 Global Inc. (NASDAQ: JCOM) was shocked last week when its share price dropped about 20% following a harsh report from a short-selling firm. Citron Research’s report called for a $27 price target on J2 Global, less than half of the current share price. The firm believes that this business is dying, and what will do it in is the expiration of J2’s eFax patent. The company does about 40% of its revenues through this segment.

Last week, the stock fell roughly 22%. Shares ended the week at $58.12, with a consensus analyst target of $94.75 and a 52-week range of $55.43 to $84.15.

Energy Focus

The stock was punished after Energy Focus Inc. (NASDAQ: EFOI) reported its fourth-quarter financial results Thursday morning. The company posted EPS of $0.14 on $17.2 million in revenue. Consensus estimates called for $0.18 in EPS on $18.1 million in revenue. Despite net sales increasing by 95% year over year and commercial sales growing 396%, the results still fell short of analyst expectations. So the stock tanked.

Over the past week, the stock dropped 41%. Shares closed at $7.95 on Friday, with a consensus price target of $21.92 and a 52-week range of $4.81 to $29.20.