4 Companies That Destroyed Shareholders Last Week
The S&P 500 and Dow Jones Industrial Average are pushing new highs as we close the first week of trading of 2017. Although the tailwind of the Trump rally has been incredibly strong, there are still companies holding back this rally. In fact, the Dow was just barely short of hitting the 20,000 mark for the first time.
24/7 Wall Street has picked out a few companies posting some of the largest losses for the past week. Some companies are hitting lows and creating huge shareholder losses.
We have included a little color on why each stock has lagged, as well as a recent trading history, consensus analyst price target and a 52-week trading range.
Kohl’s Corp. (NYSE: KSS) reported that its comparable sales dropped by 2.1% in the fiscal months of November and December 2016 combined, compared to the same period from last year. Total sales for the combined fiscal November and December period decreased a total of 2.7%.
The company now expects its fiscal 2016 diluted earnings per share (EPS) to be in the range of $3.60 to $3.65, down from the previously stated guidance of $3.80 to $4.00 per diluted share. The consensus estimates from Thomson Reuters are $3.71 in EPS and $18.72 billion in revenue.
Over the course of the week, Kohl’s shares dropped 16% to close at $41.43. The stock has a consensus price target of $46.57 and a 52-week range of $33.87 to $59.67.
When it reported its comparable sales as well, Macy’s Inc. (NYSE: M) found itself in a similar boa. It does not look good going forward in the immediate future, with Terry Lundgren stepping down from the CEO position. In fact it could be argued that Lungren ruined Macy’s. This major retailer announced that its comparable sales on an owned plus licensed basis declined by 2.1% in the months of November and December 2016 combined, compared to last year. On an owned basis, comparable sales declined by 2.7% in the combined November/December period.
The company also maintained its previously provided full-year sales guidance of a 2.5% to 3.0% decline in comparable sales on an owned plus licensed basis, and it expects to come in at the lower end of that guidance. Macy’s also expects 2016 full year EPS to be in the range of $2.95 to $3.10, versus the previous guidance of $3.15 to $3.40. The consensus estimates call for $3.11 in EPS and $25.92 billion in revenue.
Last week, Macy’s stock fell nearly 14% to end up at $30.82 a share. The consensus price target is $37.60, and the 52-week range is $29.94 to $45.50.
Despite a report of positive late-stage top-line results, Agile Therapeutics Inc. (NASDAQ: AGRX) shares got more than halved. This company posted Phase 3 results from its Twirla trial, a low-dose combined hormonal contraceptive patch. Agile plans to resubmit its New Drug Application (NDA) for Twirla in the first half of 2017 on the basis of these results and other information related to the manufacture of the drug.
The company used the Pearl Index as the efficacy measure for the Secure study. This index is used as a way to measure contraceptive fails over a calculated 100 woman-years (i.e., 100 women over one year, or 10 women over 10 years) of using the product. Agile scored a 4.80 on the Pearl Index, which did beat out the confidence interval of 95%. Despite these favorable results, just over half (51.4%) of the participants had to prematurely discontinue the study.
The shares dropped 53% to close out the week at $2.69, in a 52-week range of $1.82 to $9.04. The consensus price target is $13.17.
Shares of Inotek Pharmaceuticals Corp. (NASDAQ: ITEK) got more than halved early on Tuesday after the company provided an update on its late-stage glaucoma trial. Unfortunately, the Phase 3 top-line results of MATrX-1 in the trial of trabodenoson for the treatment of primary open-angle glaucoma or ocular hypertension did not live up to expectations.
The Inotek trial did not achieve its primary endpoint of superiority in reduction of intraocular pressure (IOP) compared with placebo at all 12 time points. This was, in part, due to a placebo response that was much greater than that observed in Phase 2.
For some brief background: Trabodenoson lowers IOP by augmenting the eye’s natural function of the trabecular meshwork, the primary outflow pathway for aqueous humor and a site of pathology in glaucoma.
Over the past week, shares retreated 72% to close at $1.70. The consensus price target is $6.40. The 52-week range is $1.65 to $10.90.