5 Companies That Destroyed Shareholders Last Week
24/7 Wall Street has picked out a few companies posting some of the largest losses for the week. There are some companies hitting lows and creating huge shareholder losses while the market is just below all-time highs. These are the same companies holding back the market and destroying shareholders.
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.
Alcobra Ltd. (NASDAQ: ADHD) saw its shares get halved on Thursday after the U.S. Food and Drug Administration (FDA) placed a clinical hold on its late-stage trial.
Specifically, the Division of Psychiatry Products gave a verbal notice that a full clinical hold had been placed on its Investigational New Drug applications for MDX in attention-deficit/hyperactivity disorder (ADHD) and fragile X syndrome. The clinical hold affects Alcobra’s ongoing Phase 3 clinical study of MDX in adult patients with ADHD, known as the MEASURE study.
Over the past week, Alcobra shares dropped by 47%. The stock closed trading at $2.47 on Friday, with a consensus price target of $8.19 and a 52-week range of $1.95 to $8.78.
Following the results from its late-stage schizophrenia trial, Intra-Cellular Therapies Inc. (NASDAQ: ITCI) saw its shares absolutely crash on Thursday. The company announced the top-line results from its Phase 3 clinical trial of ITI-007, which did not separate from the placebo, essentially meaning it did not meet the primary endpoints.
In the words of the company, “neither dose of ITI-007 separated from placebo on the primary endpoint, change from baseline on the Positive and Negative Syndrome Scale (PANSS) total score, in the pre-defined patient population.”
Shares dropped by 65% last week, closing the week at $15.24, with a consensus price target of $41.86 and a 52-week range of $14.44 to $59.96.
Tempur Sealy International Inc. (NYSE: TPX) issued a business update for its guidance for its third quarter and 2016 full year, as well as provided some information on its sales trends. Although the company is putting out some numbers, these are still subject to change. Note the company expects to report its third-quarter financial results on October 27, while a date has not yet been set for its full-year results.
Scott Thompson, Tempur Sealy board chair and chief executive commented:
Third quarter net sales are below our prior expectations. We currently expect net sales for the full year to be down 1 to 3 percent as compared to 2015. For the full year 2016, the Company currently expects Adjusted EBITDA to range from $500 million to $525 million.
The consensus estimates from Thomson Reuters call for $1.40 in earnings per share (EPS) on $911.03 million in revenue for the third quarter. The same period of last year reportedly had EPS of $1.11 and $880 million in revenue. For the 2016 full year, the consensus estimates predict that the company will have $4.18 in EPS on revenue of $3.23 billion. The 2015 full-year posted results were $3.19 in EPS on $3.15 billion in revenue.
Over the past week, Tempur Sealy shares retreated 26%. They were last trading at $56.74. The consensus price target is $71.90, and the 52-week range is $50.80 to $82.61.
After Acacia Communications Inc. (NASDAQ: ACIA) had one of the hottest initial public offerings of the year so far, with the stock more than quadrupling since its IPO, now it is looking to cash in on its recent success with a secondary offering. The company will be offering $125 million’s worth of shares, with an additional $325 million being offered by the selling shareholders, making a grand total of $450 million for the entire offering.
Over the past week, the stock dropped by 13.5%. Shares were trading at $103.28 on Friday’s close, with a consensus price target of $114.00 and a 52-week range of $27.05 to $128.73.
On Friday, CalAmp Corp. (NASDAQ: CAMP) shares tumbled after it released its fiscal second-quarter financial results late on Thursday. The company said that it had $0.27 in EPS on $90.5 million in revenue. The consensus estimates had called for EPS of $0.31 on $95.01 million in revenue. The same period of last year reportedly had $0.31 in EPS and revenue of $74.67 million.
In terms of guidance for the fiscal third-quarter, the company expects to have revenues between $81 million and $87 million and EPS in the range of $0.24 to $0.30. The consensus estimates are $0.35 in EPS on $97.88 million in revenue.
Over the past week, the stock dropped by 15%. Shares were trading at $13.95 on Friday’s close, with a consensus price target of $22.25 and a 52-week trading range of $13.01 to $21.35.