3 Companies That Destroyed Shareholders This Past Week

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The markets have made their comeback from the initial shock of Brexit, and the S&P 500 and Dow are near their all-time highs. Also with earnings season about to begin, things are starting to heat up in the markets. But some stocks are still slowing that recovery and punishing their shareholders.

24/7 Wall Street has picked out a few companies posting the largest losses for the week. We have included briefly why the stock is moving, as well as a recent trading history, consensus analyst price target and a 52-week trading range.

Humana

Shares of Humana Inc. (NYSE: HUM) plunged on Thursday after antitrust concerns arose from reports that the U.S. Department of Justice intends to meet with Aetna Inc. (NYSE: AET). This merger was originally in response to the provisions of Obamacare. However, by increasing the size of the insurance pool to deal with a larger influx of claims, this combined company might take up too much market share, according to regulators. Aetna is already looking to make some divestitures, but these might not be enough in the eyes of regulators, hence the antitrust concerns.

Humana stock dropped by 9% last week, closing Friday at $158.15, with a consensus price target of $211.38 and a 52-week range of $155.24 to $192.49.

Aetna shares did not drop significantly over the course of the week. In fact shares were only down 2.5%. The stock closed Friday at $117.00, with a consensus price target of $139.75 and a 52-week range of $92.42 to $125.47.

Amedica

In Tuesday’s session, Amedica Corp. (NASDAQ: AMDA) shares tumbled following the announcement of the pricing of its secondary offering. The company is expecting to gain about $11 million in gross proceeds from this underwritten offering.

It is pricing a total of 3.608 million shares of common stock class A units at $1 per unit, with each unit consisting of one share of common stock and one five-year warrant to purchase one share of common stock with an exercise price of $1.00 per share. Apart from this, Amedica priced its 7.392 million class B units at an offering price of $1,000 per unit. Each of the class B units is comprised of one share of preferred stock, which is convertible into 1,000 shares of common stock and 1,000 warrants.

Ultimately this offering is for 11 million shares — after exercising the conversion option — of common stock valued at $1 each. There is an overallotment option for an additional 1.65 million shares of common stock or additional warrants. The entire offering is valued up to $12.65 million.

Over the past week, the stock dropped by 33%. Shares closed Friday at $0.89, with a consensus price target of $5.00 and a 52-week range of $0.83 to $12.59.

Eclipse Resources

After Eclipse Resources Corp. (NYSE: ECR) announced the completion of its secondary offering, its shares saw a massive drop over the course of the week. The company sold its 37.5 million shares for a total of $3.50 per share, with an overallotment option for an additional 5.625 million shares. The entire offering was valued up to $150.94 million.

During the week, Eclipse shares pulled back by about 22%. The stock ended the week at $2.61, with a consensus price target of $3.56 and a 52-week range of $0.65 to $5.35.