Investing

5 Companies That Destroyed Shareholders Last Week

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Analysts are expecting some more earnings disappointments going forward, and even some giants have fallen so far. As this earnings season goes on, we might be seeing more companies destroying shareholders. Although the markets have made their comeback from a weak first quarter, some stocks are still slowing that recovery and punishing their shareholders.

We have picked out some companies that punished shareholders last 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.

Catalyst Pharmaceuticals

Just Tuesday morning alone, Catalyst Pharmaceuticals Inc. (NASDAQ: CPRX) saw its shares get halved, following a business update regarding its Lambert-Eaton myasthenic syndrome (LEMS) treatment. The company provided an update on the content of the planned resubmission of the New Drug Application (NDA) to the the U.S. Food and Drug Administration (FDA) for Firdapse (amifampridine phosphate), which currently has Breakthrough Therapy and Orphan Drug designations for LEMS.

Over the course of the week, the stock was down 44%. Shares of Catalyst ended Friday at $0.68. The consensus analyst price target is $6.81, and the 52-week trading range is $0.51 to $5.80.


Sarepta Therapeutics

Early in the week Sarepta Therapeutics Inc. (NASDAQ: SRPT) shares take a turn for the worse. The FDA previously announced that it had some voting questions on Sarepta’s Duchenne muscular dystrophy (DMD) treatment. And when the advisory committee actually voted on Sarepta’s DMD treatment, the vote did not come out in favor of the company.

Last week, shares of Sarepta fell 46% to the 52-week low of $8.00 but then made a stunning recovery to close out the week $14.19. The consensus price target is $18.73, but the 52-week high is all the way up at $41.97.

Twitter

After Twitter Inc. (NYSE: TWTR) reported disappointing first-quarter financial on Tuesday, investors sold off their positions and a few analysts weighed in on the company. The social media giant said it had $0.15 in earnings per share (EPS) on $595 million in revenue, Thomson Reuters consensus estimates had called for EPS of $0.10 and revenue of $607.84 million. In the same period of last year, Twitter posted $0.07 in EPS on $435.94 million in revenue.

Over the past week, the stock was down 15%. Twitter shares ended the week at $14.62, within 52-week range of $13.91 to $39.24. The consensus price target is $18.99.

Apple

Investors were thoroughly disappointed by the fiscal second-quarter financial results Apple Inc. (NASDAQ: AAPL) reported on Tuesday. In fact, some might even think there is a fundamental change going on in the company. The $1.90 EPS and $50.6 billion in revenue compared to consensus estimates of $2.00 in EPS and $51.97 billion in revenue, as well as the EPS of $2.33 and revenue of $58.01 billion posted in the same period of last year. For its business segments Apple reported:

  • iPhones totaled $32.86 billion in revenue on 51.19 million units.
  • iPads totaled $4.41 billion in revenue on 10.25 million units.
  • Macs totaled $5.11 billion in revenue on 4.03 million units.
  • Services netted revenues of $5.99 billion.
  • Other products (including the Apple Watch) netted revenues of $2.19 billion.

Last week, the stock fell 11% and closed at $93.74 on Friday. Its consensus price target is $125.95. The 52-week range is $92.00 to $132.97.

Stericycle

After the markets closed on Thursday, Stericycle Inc. (NASDAQ: SRCL) reported its first-quarter financial results. Unfortunately, earnings fell short of expectations and the stock saw a new 52-week low early in Friday’s session. The company said it had earnings of $1.11 in per share and revenue of $874 million. Consensus estimates were $1.15 in EPS on revenue of $873.6 million. In the same period of last year, the company posted EPS of $1.15 and $663.3 million in revenue.

The stock dropped 23% over the course of the week. Shares closed Friday at $95.56, with a consensus price target of $137.55 and a 52-week range of $91.05 to $151.57.

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