5 Companies That Destroyed Shareholders Last Week

The August doldrums are seemingly over. We have hit a new level for the markets and it is holding for now. There are a fair number of questions for what the markets hold after this summer, but a somewhat negative analyst sentiment belies this movement. Analysts can be wrong, and timing the market can be difficult. What is for certain is that the market rally over the summer has stagnated, and there are a few companies holding it back.

As we have said before, some analysts believe that these highs are not fundamentally justified, and they might be right. This holding pattern very well could be in preparation for a potential rate hike in September.

Despite all the positive sentiment about market highs, quite a few companies still have struggled. Even though the market has 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 a note on why each stock has lagged, as well as a recent trading history, consensus analyst price target and a 52-week trading range.

Before markets opened Tuesday, Abercrombie & Fitch Co. (NYSE: ANF) reported second-quarter fiscal 2016 results. The specialty retailer posted an adjusted diluted loss per share of $0.25 on net sales of $783.16 million. In the same period a year ago, the company reported adjusted earnings per share (EPS) of $0.12 and revenues of $817.76 million. Second-quarter results also compare to the Thomson Reuters consensus estimates for a loss per share of $0.02 and $787.71 million in revenues.

Shares of Abercrombie & Fitch closed the week out down nearly 25% at $17.02. The stock has a consensus price target of $20.82 and a 52-week range of $16.49 to $32.83.

Both SolarCity Corp. (NASDAQ: SCTY) and Tesla Motors Inc. (NASDAQ: TSLA) saw their shares slide this past week. These companies are more or less in step with Elon Musk cannibalizing SolarCity in his most recent acquisition agreement. Some might think this buyout would send shares higher, but it adds more risk with the Musk portfolio idea.

A recent SpaceX rocket failure tanked shares and lost Musk over a quarter of a billion dollars in his own equity. Shareholders should be wary of what they are getting into with these companies.

Shares of SolarCity ended the week down 16%. The stock was last trading at $18.48, with a consensus price target of $24.07 and a 52-week range of $16.31 to $58.87.

Tesla shares had a rocky road as well, with the stock down 10% for the week. Shares were last at $197.78, with a consensus price target of $240.08 and a 52-week range of $141.05 to $271.57.

Lululemon Athletica Inc. (NASDAQ: LULU) released its most recent earnings report after markets closed Thursday afternoon. The yoga gear maker reported adjusted diluted EPS of $0.38 on revenues of $514.5 million, compared with EPS of $0.34 on revenues of $453 million in the same period a year ago. The consensus estimates had called for EPS of $0.38 on revenues of $515.47 million. However this was not enough for investors.

Shares of Lululemon most recently closed at $68.57. The consensus price target is $73.21, and the 52-week range is $43.14 to $81.81. Over the course of the past week, the stock was down 12%.

When H&R Block Inc. (NYSE: HRB) posted a net loss per share of $0.55 on revenues of $125.2 million, that compared to the consensus estimates of a net loss of $0.53 per share and $132.62 million in revenue. The same period from last year reportedly had a net loss of $0.35 per share and revenue of $138 million.

The divestiture of the H&R Block Bank had the largest impact on overall revenues, which decreased $12.5 million year over year. The bank impact included payments to the company’s third-party bank partner, the reclassification of certain revenue as other income, and lower investment income due to the sale of securities previously held by the bank. At the same time, lower client volumes in the United States and foreign currency exchange rates contributed to the decline.

Last week, the stock was down 11%. Shares closed out at $21.65 on Friday, with a consensus price target of $28.33 and a 52-week range of $19.18 to $37.53.