4 Companies That Destroyed Shareholders Last Week

Print Email

Over the course of the past week, the Dow and S&P 500 closed at record highs, but despite all the positive sentiment in the market, there were still some laggards. Now many analysts are saying that fundamentally this rally is not justified and perhaps they might be right. Even though the market made incredible gains, a few companies held it back from pushing even higher.

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

Fairmount Santrol

After Fairmount Santrol Holdings Inc. (NYSE: FMSA) reported less-than-favorable preliminary financial results  last week, it saw its shares plunge. Although this was not a good move for the stock, it could have been worse if the company had waited until its actual earnings report.

Fairmont expects its revenues to be in the range of $113 million to $115 million, versus $145.5 million for the first quarter and $221.3 million in the same period of last year. At the same time, the company expects a net loss of $0.56 to $0.58 per share, versus a net loss of $0.07 per share in the first quarter and actual earnings per share of $0.08 per share in the year-ago period. The consensus estimates are calling for a net loss of $0.13 per share on $133.76 million in revenue.

Over the past week, Fairmont shares dropped by 16%. The stock closed Friday at $6.83, with a consensus price target of $7.70 and a 52-week trading range of $1.00 to $8.83.

CytRx

In Tuesday’s session, CytRx Corp. (NASDAQ: CYTR) stock absolutely crumbled after the company released disappointing late-stage results. The company announced the results of an analysis of its global, randomized, Phase 3 clinical trial of aldoxorubicin compared to investigator’s choice therapy in patients with relapsed or refractory soft tissue sarcomas. Because enrollment was interrupted by a partial clinical hold in November 2014, this analysis did not provide for sufficient follow-up for the nearly two-thirds of patients who entered the Phase 3 study after the hold was resolved and enrollment resumed.

Unfortunately, this resulted in nearly half of all patients being censored (excluded) from the current progression free survival evaluation. CytRx expects to conduct a second analysis, which will include longer patient follow-up and allow for greater maturation of all endpoints. The company expects to announce the results of this evaluation and hold an end-of-Phase-3 meeting with the Food and Drug Administration (FDA) in the fourth quarter of 2016. The partial clinical hold was related to a single patient enrolled in a compassionate use study, which was subsequently resolved successfully.

CytRx stock dropped by 72% last week, closing on Friday at $0.63, with a consensus price target of $4.58 and a 52-week range of $0.55 to $4.06.