4 Companies That Destroyed Shareholders Last Week

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This trading week has been shorter than most with Thanksgiving taking place on Thursday. As a result not too many companies have released news, updates or earnings this week, despite the markets hitting new highs across the board. However, a few companies did hold back the Trump rally.

24/7 Wall Street has picked out a few companies posting some of the largest losses for the past week, up until Wednesday. Some companies are hitting lows and creating huge shareholder losses.

We have included a little color on why each stock has lagged, as well as a recent trading history, consensus analyst price targets and a 52-week trading range. Keep in mind we are using pricing data from Wednesday as this is a shortened trading week.

Palo Alto Networks

Palo Alto Networks, Inc. (NYSE: PANW) released its fiscal first-quarter earnings report after the markets closed on Monday. Although the financial results were close to estimates, in fact beating on the bottom line, Palo Alto still suffered this quarter. Compared to Monday’s closing price the stock trades near 57-times expected fiscal 2017 earnings, which could offer some explanation as to why investors seem so shaken on mixed earnings.

The company posted $0.55 in earnings per share (EPS) and $398.1 million in revenue. Consensus estimates from Thomson Reuters called for $0.53 in EPS and $400.2 million in revenue. The same period from last year called for $0.35 in EPS and $297.2 million in revenue.

In terms of the outlook for the fiscal second quarter, the company expects to have EPS in the range of $0.61 to $0.63 and revenue in the range of $426 million to $432 million. The consensus estimates from Thomson Reuters are calling for $0.63 in EPS and $438.88 million in revenue.

Shares dropped over 13% last week, at $139.50. The consensus price target is $180.89 and the 52-week range is $139.00 to $140.86.

Amedica

Amedica Corp. (NASDAQ: AMDA) is watching its shares drop on Wednesday, despite receiving mixed news from the U.S. Food and Drug Administration, along with a new appointment to its management team. Although the FDA did give some good news, the bad far outweighed the good.

As for the good news, the FDA notified Amedica that the new pedicle screw system, Taurus, has been cleared for commercialization. The company is on target for surgical implantation and a full market launch of the Taurus system by the end of the year.

However, the FDA separately did not clear Amedica’s 510(k) premarket application to commercialize Valeo C+CsC, a composite spinal fusion device. This device is already marketed in Europe with successful outcomes.

Over the week, shares were down more than 21%. The stock was trading at $0.67 on Wednesday, with a consensus price target of $3.38 and a 52-week trading range of $0.60 to $3.62.

Eli Lilly

Eli Lilly & Co. (NYSE: LLY) saw its shares in free fall on Wednesday, not from the usual rhetoric of politicians or even the election, for that matter, but a late-stage trial failure. As 24/7 Wall St. has said time and again, clinical trials can make or break biotech and pharma companies. In this case Eli Lilly hit new 52-week lows, not seen since 2014 and this will not be a loss that Eli Lilly will easily forget. Effectively, the company announced results from its Phase 3 solanezumab trial in people with mild dementia due to Alzheimer’s disease (AD).

Patients treated with solanezumab did not experience a statistically significant slowing in cognitive decline when compared with patients in the placebo arm of the study.

Although the study results, which included many secondary clinical endpoints, favored solanezumab, the treatment did not make significant differences enough to warrant continuing the study. Eli Lilly has decided that it will not pursue regulatory submissions for solanezumab for the treatment of mild dementia due to Alzheimer’s disease.

Over the past week, Eli Lilly shares retreated around 13%. The stock were trading at $66.86 on Wednesday, with a consensus price target of $97.05 and a 52-week trading range of $64.18 to $88.16.

Juno Therapeutics

Juno Therapeutics Inc. (NASDAQ: JUNO) watched its shares hit a new 52-week low in Wednesday’s session following the announcement of a self-imposed clinical hold on its JCAR015 trial. The company announced that it has voluntarily placed on hold the Phase 2 clinical trial in adult patients with relapsed or refractory B cell acute lymphoblastic leukemia, known as the “ROCKET” trial.

The clinical hold was initiated after two patients suffered cerebral edema earlier this week. One patient died and, as of last night, the other is not expected to recover.

Juno has notified the U.S. Food & Drug Administration (FDA) of the voluntary hold and is working with the agency and the Data and Safety Monitoring Board to determine next steps.

Currently, the company is assessing data from the cases and the trial, as well as evaluating its options regarding the JCAR015 program.

Over the past week, shares lost nearly 28% of their value, last trading at $21.57 on Wednesday. The consensus price target is $44.27, and a 52-week range is $19.41 to $57.82.