5 Companies That Destroyed Shareholders Last Week
After a less-than-favorable Employment Report on Friday, the broad markets took a downward turn to close out a relatively strong week. Most companies had a fairly positive week, even taking Memorial Day off. There were some that held back the market, and even worse, some that destroyed shareholders.
24/7 Wall St. has picked out a few of these companies that lost big this past week. Among these active stocks, 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.
On Thursday, Sarepta Therapeutics Inc. (NASDAQ: SRPT) received some bad news from the U.S. Food and Drug Administration (FDA) that could threaten profits from its Duschenne muscular dystrophy (DMD) treatment (eteplirsen). Along the vein of the compassionate use policy, the FDA is seemingly pressuring Sarepta to provide eteplirsen on an at-cost basis to its patients as opposed to granting an accelerated approval. Ultimately this could wreck any hope that Sarepta has about earning a profit for this treatment.
Over the course of the week, Sarepta shares fell roughly 26.5%. The stock was last trading at $15.57, with a consensus analyst price target of $19.23 and a 52-week trading range of $8.00 to $41.97.
Shares of Globalstar Inc. (NYSEMKT: GSAT) were in free fall on Friday following decreasing odds of a Federal Communications Commission (FCC) approval for a heavier use of its airwaves. This would allow the company to offer mobile broadband services on frequencies normally reserved for satellite signals. According to Bloomberg, two members of the five person agency voted no, and for this to go Globalstar’s way the company would need to secure the remaining votes.
Over the course of the week, shares fell roughly 58.6%. The stock last seen at $0.94, with a consensus price target of $5.50 and a 52-week range of $0.63 to $3.00.
Signet Jewelers Ltd. (NYSE: SIG) suffered last week after James Grant’s investment newsletter took a shot at the company. For reference, Zales, Jared and Kay are just a few brands that Signet owns. The newsletter brought light a Buzzfeed story citing customer complaints that diamonds purchased at these brand name stores were swapped with lesser quality stones. Critics also are saying that this company has become more of a finance company than an actual jewelry chain.
Over the course of the week, shares fell roughly 11.4%. The stock ended the week at $88.19, with a consensus price target of $139.94 and a 52-week range of $84.80 to $152.27.
A press release signaling the termination of its Phase 2 Pathway study hurt StemCells Inc. (NASDAQ: STEM). The company said that the magnitude and the perceived trend of the effect over time did not justify continuing the study or exploring the variability in the initial patient observations. Here is what really hurts, what all but spells the death of the company’s investors: StemCells will commence an orderly wind down of operations. This might not mean outright implosion ahead for a 100 cents on the dollar loss, but wind downs rarely yield very much for investors. History has shown that it should be expected that the common stock holders may pay the ultimate price here.
Shares fell roughly 82.8% last week. The stock closed Friday at $0.52, in a 52-week range of $0.47 to $9.00. The consensus price target is $22.00.
After Conn’s Inc. (NASDAQ: CONN) reported its fiscal first-quarter financial results early on Thursday, shares hit a new 52-week low later on the day and again on Friday. The company said it had a net loss of $0.31 per share on $389.1 million in revenue. The consensus estimates from Thomson Reuters had called for $0.06 in earnings per share (EPS) on $392.64 million in revenue. In the same period of last year, the retailer posted EPS of $0.44 and $365.08 million in revenue. Just looking at how far Conn’s was off the consensus estimates on the bottom line suggests that something went very wrong this quarter.
Last week, shares fell roughly 23.7%. The stock ended trading at $8.51 on Friday, with a consensus price target of $19.33 and a 52-week range of $8.35 to $43.95.