2 Stocks Battered by C-Suite Shakeups

Both ARA and SPWH just lost their CFOs

by Patrick Martin

Published on Mar 28, 2019 at 2:37 PM
Updated on Jun 24, 2020 at 10:16 AM

The Dow has traded on both sides of breakeven today, as investors monitor U.S.-China trade talks. Among the stocks making big moves today, dialysis services provider American Renal Associates Holdings (NYSE:ARA) and sporting goods retailer Sportsman's Warehouse Holdings Inc (NASDAQ:SPWH) are lower, while biotech Tricida Inc (NASDAQ:TCDA) is soaring. Below, we'll take a closer look at the shares of ARA, SPWH, and TCDA.

Accounting Woes, C-Suite Exit Buries ARA

In the cellar of the New York Stock Exchange (NYSE) today is American Renal stock, down 38.2% to trade at $6, and earlier falling to a record low of $5.80. The dialysis services provider announced it has to restate its financials for 2014-2018, while the company's CFO also resigned. Even prior to today's collapse, ARA had been carving out a channel of lower lows since its August highs near $24.

Although the stock landed on the short-sale restricted (SSR) list today, several short sellers are likely cheering. More than 12% of ARA's total available float is sold short, accounting for a whopping 27 times the equity's average daily trading volume. 

SPWH Hit With Double-Dose of Ugly Headlines

Sportsman's Warehouse reported a fourth-quarter sales miss, while full-year guidance also fell short of estimates. To make matters worse, the company's CFO announced his resignation. All of this has SPWH down 12% to trade at $4.78, on track for its worst single-session drop since March 2018. The shares nabbed an annual high of $6.69 as recently as Feb. 27, but this month so far have shed 25% and are heading toward their fifth straight weekly loss.

A shift in analyst sentiment could keep the pressure on SPWH. Exactly 80% of brokerages covering the security rate it a "buy" or better, with zero "sells" on the books. Plus, its consensus 12-month price target of $6.90 is a roughly 45% premium to its current perch.

Upbeat Drug Data Powering TCDA's Best Day Ever

Tricida stock is up 45.9% to trade at $35.12, one of the best stocks on the Nasdaq today, after the drugmaker's kidney disease treatment met its main and secondary goals in long-term trials. A marketing application is expected to be submitted in the latter half of 2019.

TCDA is on track for its best day ever by a wide margin, but remains off its Sept. 10 record high of $40.10. The shares have nearly doubled since bottoming at $19.43 on Jan. 30, an area that coincides with the TCDA's June initial public offering (IPO) price of $19.  


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