Investing

6 Companies That Destroyed Shareholders Last Week

Both the Dow Jones Industrial Average and S&P 500 have felt a huge downward push over the course of the first two months of the new year, and only now are they starting to recover. Although stocks are beginning to make a comeback, there are still those that are caught in the downturn slowing this recovery.

We decided to pick out some companies that destroyed shareholders over the course of the past week. While these were not the six biggest absolute losers of the week, of 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.

Chimerix

Chimerix Inc. (NASDAQ: CMRX) had a bad start to the week as it tumbled in early trading on Monday, following some late stage clinical trial results. The company announced detailed results from its Phase 3 Suppress trial of brincidofovir for the prevention of cytomegalovirus (CMV) in patients undergoing hematopoietic cell transplantation (HCT). Ultimately, its Suppress trial did not meet the primary endpoint of prevention of clinically significant CMV infection at Week 24 following HCT.

Despite the results showing that brincidofovir had a clear antiviral effect, preventing CMV reactivation particularly in patients at higher risk for CMV infection, there was not enough traction behind the results to meet the primary endpoint.

Over the course of the week, the stock dropped roughly 37%. Shares of Chimerix ended the week at $4.72, with a consensus analyst price target of $9.90 and a 52-week trading range of $4.36 to $58.04.


Lumber Liquidators

Earlier this month, Lumber Liquidators Holdings Inc. (NYSE: LL) agreed to pay a $10 million fine related to a violation of the Lacey Act prohibiting U.S. companies from importing timber products made from materials protected by another country’s laws. The stock price soared. However, the company received some really bad news this past week. A second charge against the company is that some of its imported flooring contained high levels of formaldehyde, a carcinogen. On February 10, the Centers for Disease Control (CDC) said that exposure to the flooring posed a “low risk of cancer.” The agency has now reversed itself and the stock was hammered.

The share price dropped nearly 22% over the course of the week. Lumber Liquidators shares were trading at $11.11 on Friday’s close, with a consensus price target of $15.63 and a 52-week range of $10.53 to $52.20.

PTC Therapeutics

Leading the bears early on Tuesday was PTC Therapeutics Inc. (NASDAQ: PTCT), following the announcement that it received a Refuse to File letter from the U.S. Food and Drug Administration (FDA) regarding its New Drug Application (NDA) for Translarna (ataluren). The FDA said in the letter that the application was not sufficiently complete to permit a substantive review. PTC first learned of the Refuse to File decision via this letter and is reviewing its content to determine the appropriate next steps.

Over the past week, the stock dropped 72%. PTC shares closed at $7.99 on Friday, with a consensus price target of $70.70 and a 52-week range of $10.11 to $78.72.

Fitbit

After the markets closed on Monday, Fitbit Inc. (NYSE: FIT) reported its fourth-quarter financial results. The company said it had $0.35 in earnings per share (EPS) on $711.6 million in revenue, while consensus estimates from Thomson Reuters called for EPS of $0.25 and $647.82 million in revenue. Despite such strong results, the guidance is what tanked this stock. Fitbit detailed in its report:

For the first quarter 2016, Fitbit expects several dynamics to drive results. For the first time in the company’s history, Fitbit will make a global launch of new products, Fitbit Blaze and Alta. Launching media campaigns around the world is expected to drive higher sales and marketing expenses for the quarter. Also, the timing of shipments into sales channels may result in the majority of reorders, especially for Alta, coming in the second quarter of 2016. The company also expects to incur additional manufacturing costs in the first quarter to maximize production of new products to meet expected demand, which is expected to impact gross margins in the quarter.

The company now expects EPS to be in the range of $0.00 to $0.02 and revenues to total between $420 million and $440 million. The consensus estimates are $0.24 in EPS on revenue of $484.58 million.

The stock dropped 21% over the course of the week. Fitbit shares ended the week at $12.15, within a 52-week range of $11.91 to $51.90. The consensus price target is $23.78.

Republic Airways

Following a recent bankruptcy filing, Republic Airways Holdings Inc. (NASDAQ: RJET) saw its shares in free fall on Friday. The company announced that it and certain of its subsidiaries had filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. Under this reorganization, Republic’s operating subsidiaries will conduct normal flight operations and the company will do business as usual across its locations. The company believes that it has sufficient assets and liquidity to meet its working capital and operating expenses during the restructuring process.

Last week, the stock fell roughly 67%. Shares of Republic Airways ended the week at $0.92, with a consensus analyst target of $5.25 and a 52-week range of $0.61 to $14.80.


Peregrine Pharmaceuticals

Word of the termination of a late-stage clinical trial prompted Peregrine Pharmaceuticals Inc. (NASDAQ: PPHM) shares to sink in Friday’s regular trading session. The company said it is discontinuing its Phase 3 Sunrise trial of bavituximab in patients with previously treated locally advanced or metastatic non-squamous non-small cell lung cancer. Ultimately, the decision to stop the trial was based on the recommendation of the study’s Independent Data Monitoring Committee, following a pre-specified interim analysis performed after 33% of targeted overall events (patient deaths) in the study were reached.

In the past week, the stock dropped 59%. The shares were changing hands at $0.41 as Friday’s session came to a close, within a 52-week range of $0.37 to $1.66. The consensus price target is $3.83.