Initial public offerings (IPOs) have been a hot topic of late, with big names like Airbnb and DoorDash having some of the biggest showings this year. However, these two companies are only one side of the coin. What about the IPOs that failed to lived up to expectations?
24/7 Wall St. has created a list of some of the biggest IPO losers of 2020 year, including some brief analysis, as well as a recent trading history and what analysts are saying about each stock.
Phoenix Tree Holdings Ltd. (NYSE: DNK) came public at the very beginning of the year — January 17 to be specific. This company suffered the brunt of the coronavirus pandemic, and that puts it at the top of this list. Shares are down 76% since going public, with most of this loss coming in the past six months. This company operates in China and leases apartments in major cities. Phoenix Tree stock has traded mostly above the $3 mark in the past month, and it has a post-IPO range of $1.27 to $13.90. The consensus price target is $11.60.
The Lizhi Inc. (NASDAQ: LIZI) IPO also occurred in January. Shares are down 69% since then, and half of these losses have come in the past six months. The company operates an online audio platform in China. Lizhi stock recently has traded at the low-end of its post-IPO range of $1.95 to $15.25. The consensus price target is $8.11.
Shares of Velocity Financial Inc. (NYSE: VEL) are down nearly 54% since coming public on January 17. There seems to be a trend of companies coming public before the pandemic being hurt the worst. This real estate finance company primarily originates and manages investor loans. Velocity Financial stock recently rose above $6 for the first time since August. The post-IPO range is $2.24 to $14.90, and the consensus analyst target is $7.50.
Casper Sleep Inc. (NYSE: CSPR) came public in early February, again before the pandemic hit. Shares are down 50% since then. This is one of the biggest sellers of mattresses and sleep accessories, with subsidiaries across the United States, Canada and Europe. Casper Sleep stock has declined steadily since August to just above $7. It has a post-IPO range of $3.15 to $15.85. The consensus price target is $8.30.
Shares of Muscle Maker Inc. (NASDAQ: GRIL) are down 48% since coming public on February 13. This company operates a chain of healthy restaurants under the franchises Muscle Maker Grill and Healthy Joe’s. Although the stock has been on the rise since September to around $2, it is still down massively from the IPO. The post-IPO range is $1.31 to $5.09.
Progenity Inc. (NASDAQ: PROG) is a biotech that offers testing services for common hereditary disorders, cystic fibrosis, spinal muscular atrophy and many more. Shares are down 48%. The company only came public on June 19. Progenity stock has more or less doubled since the beginning of December to around $6.50, but it is still down from its post-IPO high of $15.92. The stock has reached as low as $3.08. Analysts have a consensus price target of $11.60.
Since AnPac Bio Medical Science Co. Ltd. (NASDAQ: ANPC) came public on January 30, shares have dropped about 46% since. This company is another biotech, and it researches, develops, markets and sells multi-cancer screening and detection tests to corporations and life insurance companies in China and the United States. AnPac Bio stock has nearly doubled since the end of October to around $6. It has a post-IPO range of $3.15 to $12.00. The consensus price target is $13.00.