Investing

5 Companies That Destroyed Shareholders Last Week

Both the Dow Jones Industrial Average and S&P 500 are now positive for 2016, just in time for the kick off this earnings season. Analysts are expecting some earnings disappointments going forward, as S&P Global Market Intelligence expects earnings to shrink by about 8% in the first quarter. So we might be seeing more companies destroying shareholders as this earnings season picks up. Although the markets have made their comeback, 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.

Clovis Oncology

After an FDA panel voted against its lung cancer drug, Clovis Oncology Inc. (NASDAQ: CLVS) saw its stock drop over the course of this past week. Analysts piled on to the stock and seemingly pushed it lower as well. Mizuho was at Neutral but lowered its price target from $21 to $15. JPMorgan downgraded Clovis from Overweight to Neutral and the target was cut to $15 from $42, and Credit Suisse downgraded it to Neutral from Outperform with a target cut to $15 from $32. Janney maintained a Buy rating but slashed its fair value estimate to $24 from $50.

Over the course of the week, the stock was down 12%. Shares of Clovis fell to $13.84 on Friday. The consensus analyst price target is $20.50, and the 52-week trading range is $12.25 to $116.75.


Horizon Pharma

On Tuesday, Horizon Pharma PLC (NASDAQ: HZNP) absolutely tanked, following an update on its first-quarter guidance for investors. The company expects first-quarter revenue to be in the range of $195 million to $210 million, well below Wall Street consensus estimates of $228 million in revenue. So far year to date, this stock has risen about 30%.

Last week, shares of Horizon Pharma were down 21%. The stock closed trading at $14.78 on Friday, with a consensus price target of $33.36 and a 52-week range of $12.86 to $39.49.

Seagate Technology

Seagate Technology PLC (NASDAQ: STX) has gone from bad to worse. Its preliminary quarterly financial data were a disappointment for the company, and likely for rival Western Digital. It might also reflect poorly on SanDisk if the weakness spills over into Western Digital too much — at least that would be the case if M&A arbitrage investors worry about unlikely merger risks arising. As a reminder, these two companies are in a pending merger, but they have approved their merger and are awaiting closure in the second quarter of 2016.

Over the past week, the stock was down 22%. Seagate shares ended the week at $25.59, within 52-week trading range of $25.54 to $60.09. The consensus price target is $33.50.

Cellectar Biosciences

On Friday, Cellectar Biosciences Inc. (NASDAQ: CLRB) announced the pricing of its secondary offering of common stock, or pre-funded warrants, at a price of $2.13 per share and associated traditional warrants, for gross proceeds of roughly $7.0 million. The stock dropped about 30% in just Friday’s session alone. The company intends to use the net proceeds from the offering for general corporate and working capital purposes, including continued development of CLR 131 for the potential treatment and management of multiple myeloma, as well as the continued development of targeted therapeutic cancer agents using the company’s proprietary phospholipid drug conjugate delivery platform.

Last week, the stock fell 42% and closed at $2.10 on Friday. The consensus price target is $2.50. The 52-week range is $2.07 to $38.90.

Harmony Gold

After peaking early in the week, Harmony Gold Mining Co. Ltd. (NYSE: HMY) slowly slid down as Friday came around. At its peak, this looked like one of the best gold stocks, but slowly it turned into one of the worst. The question many investors are asking is “Who knew that reaffirming its gold targets could look so bad?” But considering how much this company is up year to date (285%), it makes sense that the stock might be pulling back now.

The stock dropped 14% from the peak level of the week. Shares closed Friday at $3.59, with a consensus price target of $3.35 and a 52-week range of $0.53 to $4.19.