4 Companies That Destroyed Shareholders This Past Week

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Earnings season is practically over. The analysts that were expecting earnings disappointments for this season appear to have been correct as many companies have fallen flat in the past few weeks.

Back to the beginning of this season, S&P Global Market Intelligence made a call that earnings for the S&P 500 would shrink by about 8% in the first quarter, which at this point does not look like a bad call.

24/7 Wall St. has picked out a few of these companies that lost big this past 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.

Aduro BioTech

Following negative results in its mid-stage ECLIPSE trial, Aduro BioTech Inc. (NASDAQ: ADRO) shares tumbled on Monday morning. The company announced that the Phase 2b ECLIPSE trial did not meet the primary endpoint of an improvement in overall survival for patients with pancreatic cancer who had failed at least two prior therapies in the metastatic setting.

The primary endpoint of this trial was overall survival, while secondary endpoints included evaluation of clinical and immune response and safety. The median overall survival in this third-line and greater setting was 3.8 months for patients treated with the immunotherapy regimen of CRS-207 and GVAX Pancreas, 5.4 months for patients treated with CRS-207 alone and 4.6 months for patients administered chemotherapy.

Law firms are now ‘investigating’ for future class action suits. The company’s official press release, from Chairman (and president and CEO)Stephen T. Isaacs, said:

This is an unexpected outcome, and we are disappointed particularly for the pancreatic cancer patients who are in need of additional treatment options… While we are well aware of the very difficult-to-treat nature of late-stage metastatic pancreatic cancer, we are surprised by the divergence of these data from the results of our Phase 2a study. At the same time, we continue to look forward to the interim results later this year from our ongoing STELLAR trial, which is evaluating CRS-207 and GVAX Pancreas with and without the anti-PD1 checkpoint inhibitor nivolumab as a second-line therapy for patients with metastatic pancreatic cancer. We believe the scientific rationale for combining CRS-207 with a checkpoint inhibitor is compelling. Additionally, as a company, we are very well-positioned with a strong cash position and three differentiated, potentially synergistic immunotherapy platforms comprising our LADD, STING pathway activator and B-select monoclonal antibody programs.

Aduro’s stock hit a multiyear low to kick off the week, and shares fell 32% to this low, but by the end of the week the stock made a handy recovery. The stock closed at $10.47 on Friday. Its consensus price target was $26.20. The 52-week trading range is $7.26 to $37.49.

Target

Target Corp. (NYSE: TGT) reported its fiscal first-quarter financial results Wednesday morning. Although the numbers were mixed, albeit with better-than-expected earnings, guidance seemingly cratered this stock. Some might attribute this to the Amazon effect, while others are seeing this as a weather-related issue.

The company said it had $1.29 in earnings per share (EPS) on $16.20 billion in revenue. That compares to consensus estimates from Thomson Reuters of $1.19 in EPS on revenue of $16.31 billion. In the same period of last year, Target posted EPS of $1.10 and $17.12 billion in revenue.