In this article, we will take a look at the 25 biggest stocks with negative beta. To see more such companies, go directly to 5 Biggest Stocks with Negative Beta.
Stock markets were in see-saw mode before the Fed’s September decision on rate hikes. Markets gained on September 11 after positive data from China and US Treasury Secretary Janet Yellen’s comments in which she said she’s “feeling very good” about the possibility that the US would avoid a recession. However, when the Fed showed its resolve to continue raising interest rates if needed, the markets fell and investors are still not ruling out the possibility of recession near the end of this year or in the first half of 2024.
In an August report, Stifel said that the stock market might end the year lower from here. But the report said that long-term investors maintain their “composure” despite the short-term risks. The report said that whenever the first half of a year sees positive performance in the stock market, chances of markets outperforming in the second half increase.
Our Methodology
For this article, we first used the Finviz stock screener to identify companies that have a beta value of less than 0 (as of September 11). We then sorted all these stocks in terms of market cap and 25 stocks with highest market caps were chosen.
Beta is a measure of volatility. Stocks with negative beta usually move in the opposite direction of the overall market. Stocks with negative beta could be useful to gain exposure to contrarian market trends and to diversify your portfolio.
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Biggest Stocks with Negative Beta
25. Teekay Corporation (NYSE:TK)
Market Cap as of September 13: $529.97M
Canadian shipping company Teekay Corporation (NYSE:TK) shares have gained about 70% over the past one year. Teekay Corporation (NYSE:TK) ranks 24th in our list of the biggest stocks with negative beta.
24. Walkme Ltd (NASDAQ:WKME)
SaaS company WalkMe is one of the stocks with negative beta. The company in August posted second quarter results. Adjusted EPS in the quarter came in at $0.00 beating estimates by $0.06. Revenue came in at $66.16 million, beating estimates by $0.44 million.
23. Hammerhead Energy Inc. (NASDAQ:HHRS)
Market Cap as of September 13: $1.06B
Hammerhead Energy Inc. (NASDAQ:HHRS) earlier this month increased 2023 annual average production guidance of 41,500 boe/d from the previous estimate of 40,200 boe/d.
According to Insider Monkey’s database of 910 hedge funds, 5 hedge funds had stakes in Hammerhead Energy Inc. (NASDAQ:HHRS).
22. Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA)
Market Cap as of September 13: $1.2B
Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA) shares have gained about 20% year to date through September 9. As of the end of the second quarter of 2023, 20 hedge funds tracked by Insider Monkey had stakes in Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA).
21. Disc Medicine Opco Inc. (NASDAQ:IRON)
Market Cap as of September 13: $1.21B
Disc Medicine Opco Inc. (NASDAQ:IRON) works on hematologic disease treatments.
As of the end of the second quarter of 2023, 22 hedge funds tracked by Insider Monkey had stakes in Disc Medicine Opco Inc. (NASDAQ:IRON).
20. Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN)
Market Cap as of September 13: $1.29B
Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) shares have lost about 30% in value year to date through September 9. Last month Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) posted Q2 results. EPS in the quarter came in at -$0.61, meeting estimates.
19. Summit Therapeutics PLC (NASDAQ:SMMT)
Market Cap as of September 13: $1.3B
Summit Therapeutics PLC (NASDAQ:SMMT) last month posted Q2 results and the company’s management said the following during the earnings call
“I’m incredibly optimistic with the great opportunity we have in front of us with ivonescimab and the progress that we have made as a team. I’ll give you an update on the financial developments during the quarter and our financial position as of the end of the quarter. About the P&L. Net loss for the quarter was $14.7 million compared to a net loss of $16.8 million in the second quarter of 2022. As mentioned, we have engaged in 2 Phase III clinical trials for ivonescimab, and majority of our spending now reflects investments in development of this molecule, ivonescimab. At the same time, we continue to ensure that we are focused and remain well disciplined with our spending to extend our cash runway as long as possible.
Speaking about our cash position, we exited the quarter with $220 million in cash, investments and receivables. We believe this is to fund our operating cost and working capital needs with currently planned clinical trials for SMT112 going into the second half of 2024. This includes appropriately building an experienced oncology team capable of executing multiple large clinical trials and the development work, as well as initial investments to begin setting up manufacturing for ivonescimab in our territory. We have a loan of $100 million on our balance sheet that becomes due in September 2024 and the ability to repay in certain scenarios, if we complete a capital raised transaction prior to September 2024. Our cash equivalents and short-term investments are held in highly-liquid and highly-rated money market funds on U.S. treasuries.”
Read the full earnings call transcript here.
18. Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX)
Market Cap as of September 13: $1.35B
Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) is known for its treatment of lateral sclerosis. Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) shares have lost about 31% over the past one year.
As of the end of the second quarter of 2023, 36 hedge funds in Insider Monkey’s database of hedge funds reported owning stakes in Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX).
Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) gave an important business update during its latest earnings call and said:
“We have demonstrated the benefit of AMX0035 in ALS and believe it could help in other neurodegenerative diseases. When we originally developed AMX0035 our goal was to target endoplasmic reticulum stress or ER stress and mitochondrial dysfunction two connected central pathways that lead to neurodegeneration. As we announced on our last call, we intend to initiate a global pivotal Phase 3 study in PSP later this year called Orion. Orion is a well-powered study that will enroll approximately 600 participants and it was designed and planned in collaboration with key global academic leaders, people living with PSP and advocacy groups. PSP is a rare but recognizable progressive and fatal neurodegenerative disease with clear and well-known clinical hallmarks that include progressive disability with respect to eye movement, walking imbalance, speech and swallowing and cognitive function.
There are currently no disease-modifying treatments for PSP and we are hopeful that AMX0035 might be able to help. PSP is characterized as a tauopathy, with genetic and pathological findings, supporting a primary role for tau in this disease. Given AMX0035’s proposed mechanism of action that targets pathways upstream of tau aggregation and the Phase 2 placebo-controlled PEGASUS clinical trial data, which demonstrated that AMX0035 significantly lowered both plasma tau 181 and total tau in the cerebrospinal fluid of people with Alzheimer’s disease, we are excited to pursue this indication in PSP. We recently hosted a webcast with Professor Dr. Gunter Hadinger, a leading expert in PSP and the primary investigator for our Phase 3 ORION trial. As part of the webcast, we shared insights into the scientific rationale for studying AMX0035 in PSP and an overview of the Phase 3 trial design.”
Read the full Q2 earnings call transcript here.
17. Studio City International Holdings Limited (NYSE:MSC)
Market Cap as of September 13: $1.4B
Hong Kong-headquartered Studio City International Holdings Limited (NYSE:MSC) ranks 17th in our list of the biggest stocks with negative beta. As of the end of the second quarter of 2023, 5 hedge funds in Insider Monkey’s database of funds had stakes in Studio City International Holdings Limited (NYSE:MSC). The most significant stakeholder of the firm during this period was Edward A. Mule’s Silver Point Capital which owns a $195 million stake in Studio City International Holdings Limited (NYSE:MSC).
16. DHT Holdings Inc. (NYSE:DHT)
Market Cap as of September 13: $1.41B
Crude oil tanker company DHT Holdings Inc. (NYSE:DHT) ranks 16th in our list of the biggest stocks with negative beta. DHT Holdings Inc. (NYSE:DHT) has gained about 7% over the past one year.
As of the end of the second quarter of 2023, 22 hedge funds tracked by Insider Monkey were long DHT Holdings Inc. (NYSE:DHT). The biggest hedge fund stakeholder of DHT Holdings Inc. (NYSE:DHT) was Jeremy Hosking’s Hosking Partners which owns a $33.5 million stake in DHT Holdings Inc. (NYSE:DHT).
15. AbCellera Biologics Inc. (NASDAQ:ABCL)
Market Cap as of September 13: $1.51B
AbCellera Biologics Inc. (NASDAQ:ABCL) is a Canadian-based biotechnology company. In August AbCellera Biologics Inc. (NASDAQ:ABCL) posted second quarter results. GAAP EPS in the quarter came in at -$0.11 beating estimates by $0.01.
Revenue in the quarter fell 78.1% year over year to $10 million, missing estimates by $2.21 million.
As of the end of the second quarter of 2023, 25 hedge funds had stakes in AbCellera Biologics Inc. (NASDAQ:ABCL).
14. Arcellx, Inc. (NASDAQ:ACLX)
Market Cap as of September 13: $1.6B
Arcellx, Inc. (NASDAQ:ACLX) shares have gained about 80% over the past one year.
As of the end of the second quarter of 2023, 29 hedge funds in Insider Monkey’s database of 910 hedge funds were long Arcellx, Inc. (NASDAQ:ACLX).
13. Recursion Pharmaceuticals Inc. (NASDAQ:RXRX)
Market Cap as of September 13: $1.8B
Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) last month posted second-quarter results. GAAP EPS in the quarter came in at -$0.38. Revenue in the period jumped 42.9% year over year to $11 million.
As of the end of the second quarter of 2023, 15 hedge funds out of the 910 funds tracked by Insider Monkey reported owning stakes in Recursion Pharmaceuticals Inc. (NASDAQ:RXRX).
12. Ventyx Biosciences, Inc. (NASDAQ:VTYX)
Market Cap as of September 13: $2B
Yet another biotech stock in our list of the biggest stocks with negative beta, Ventyx Biosciences Inc. (NASDAQ:VTYX) shares have gained about 48% over the past one year. In August Ventyx Biosciences Inc. (NASDAQ:VTYX) posted second quarter results. GAAP EPS in the second quarter came in at -$0.91 missing estimates by $0.20.
As of the end of the second quarter of 2023, 33 hedge funds tracked by Insider Monkey reported having stakes in Ventyx Biosciences Inc. (NASDAQ:VTYX).
11. Cal-Maine Foods Inc. (NASDAQ:CALM)
Market Cap as of September 13: $2.28B
Cal-Maine Foods Inc. (NASDAQ:CALM) ranks 11th in our list of the biggest stocks with negative beta. Cal-Maine Foods Inc. (NASDAQ:CALM) in July posted fiscal Q4 results. GAAP EPS in the period came in at $2.27 beating estimates by $0.27. Revenue in the quarter jumped 16.1% year over year to $688.68 million, beating estimates by $75.74 million.
10. Montauk Renewables, Inc. (NASDAQ:MNTK)
Market Cap as of September 13: $1.38B
Montauk Renewables, Inc. (NASDAQ:MNTK) last month posted Q2 results. GAAP EPS in the quarter totaled $0.01, missing estimates by $0.03. Revenue in the period fell 21.5% year over year to $53.26 million, beating estimates by $6.81 million.
9. Alvotech (NASDAQ:ALVO)
Market Cap as of September 13: $2.3B
Last month, Alvotech (NASDAQ:ALVO) posted first half results. GAAP EPS during the period came in at -$0.39. Revenue in the quarter fell 43.3% year over year to $22.72 million.
As of the end of the second quarter of 2023, 34 hedge funds tracked by Insider Monkey reported owning stakes in Alvotech (NASDAQ:ALVO).
8. Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI)
Market Cap as of September 13: $2.5B
Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) has lost about 50% in value over the past one year. During the second quarter, Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI)’s revenue fell 71% year over year and missed analyst estimates by $2.23 million.
As of the end of the second quarter of 2023, 26 hedge funds out of the 910 funds had stakes in Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI), according to Insider Monkey’s database of 910 funds.
ClearBridge Small Cap Value Strategy made the following comment about Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) in its Q4 2022 investor letter:
“Another detractor during the period was Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI), which provides products to enable the development of drug therapies, diagnostics, novel vaccines, and support research on human diseases. The company continues to face headwinds from both investor skepticism over the loss of its COVID-19 revenue and continued supply chain disruptions in the company’s bioprocessing consumables division, which weighed on the stock’s performance. We believe the value of the company’s nucleic acids business has been overly discounted relative to its long-term potential, and that the company’s position as a leading supplier to the growing field of mRNA vaccine research and development leaves it well positioned to be a long-term compounder within the portfolio.”
7. WD-40 Company (NASDAQ:WDFC)
Market Cap as of September 13: $2.73B
Lubricating products company WD-40 Company (NASDAQ:WDFC) ranks 7th in our list of the biggest stocks with negative beta. As of the end of the second quarter of 2023, 14 hedge funds reported owning stakes in WD-40 Company (NASDAQ:WDFC). The biggest stakeholder of WD-40 Company (NASDAQ:WDFC) was Paul Marshall And Ian Wace’s Marshall Wace LLP which owns a $24.5 million stake in the company.
Diamond Hill Capital made the following comment about WD-40 Company (NASDAQ:WDFC) in its Q3 2022 investor letter:
“WD-40 Company (NASDAQ:WDFC) markets a range of maintenance products, and homecare and cleaning products. We believe investors have unrealistic expectations about the company’s ability to grow its revenue base enough to justify its valuation, and the company is likely to be less resilient as COVID-related tailwinds to its business subside. In Q3, shares of WD40 traded down on a weak earnings report that showed falling revenues as the company is also challenged by cost pressures.”
6. Akero Therapeutics, Inc. (NASDAQ:AKRO)
Market Cap as of September 13: $2.79B
Akero Therapeutics, Inc. (NASDAQ:AKRO) is one of those stocks that gained earlier this year on the hype around liver disease treatments market.
Out of the 910 hedge funds in Insider Monkey’s database, 29 hedge funds tracked by Insider Monkey had stakes in Akero Therapeutics, Inc. (NASDAQ:AKRO). The most notable stakeholder of Akero Therapeutics, Inc. (NASDAQ:AKRO) during this period was Panayotis Takis Sparaggis’s Alkeon Capital Management which owns a $162 million stake in the company.
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Disclosure: None. 25 Biggest Stocks with Negative Beta is originally published on Insider Monkey.