5 Companies That Destroyed Shareholders Last Week
Markets were just below all-time highs over the course of the past week, until Friday when everything pulled back. Is this the end of the holding pattern? There are a fair number of questions for what the markets hold after this summer, but a somewhat negative analyst sentiment surrounds this movement.
As we have said before, some analysts believe that these highs are not fundamentally justified, and they might be right after Friday’s move.
The markets slumping to close out the week is the result of many different companies ruining shareholders. 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.
On Tuesday, Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP) was the disaster of the day after the company announced that it will stop development of its fibromyalgia treatment after it failed in a late-stage trial. While the drop might signal the beginning of the end here, there also might still be some hope for Tonix. The company did confirm that it will shift the focus of its TNX-102 SL toward patients suffering from post-traumatic stress disorder (PTSD). This represents a huge opportunity if successful, but investors need to understand that the prospects for upside hopes that were offered up even last month just became drastically reduced.
In the study, Tonix showed that the drug candidate did not meet its primary pain reduction target by 30% or more over a 12-week period. What is interesting is that this drug candidate has shown a stronger effect on PTSD patients than its efficacy in treating fibromyalgia. Management has even concluded that it might be able to secure a breakthrough therapy status.
Shares of Tonix closed the week out down 64% at $0.78. The stock has a consensus price target of $6.57 and a 52-week trading range of $0.76 to $7.95.
Shares of Advanced Micro Devices Inc. (NASDAQ: AMD) also were hit hard, down over 6%, after news late Tuesday that AMD is issuing just over $1 billion in new securities. The offering was listed as being $600 million in common stock and $450 million in convertible senior notes. On top of that, AMD granted the underwriters a 30-day overallotment option to purchase up to $90 million in shares and up to $67.5 million of the convertible senior notes. That makes the real potential offering $1.2 billion if the overallotment is taken.
AMD shares ended the week down 21.5% to $5.89, with a consensus price target of $5.94 and a 52-week range of $1.65 to $8.00.