Please ensure Javascript is enabled for purposes of website accessibility

Why Energizer Holdings, Gran Tierra Energy, and Green Plains Slumped Today

By Dan Caplinger - Jun 19, 2019 at 4:34PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Despite mildly encouraging news from the Fed, these stocks lost ground.

Wednesday proved to be a relatively quiet day on Wall Street, despite the fact that the Federal Reserve made a key decision that could foreshadow a shift in interest rate policy in the near future. As expected, no change to interest rates occurred this month, but many investors now believe that it's only a matter of time before the central bank has to become more accommodative in order to spur economic growth. Though the market made gains following the announcement, some stocks missed out on the upward move. Energizer Holdings (ENR -3.29%), Gran Tierra Energy (GTE -1.32%), and Green Plains (GPRE -0.39%) were among the worst performers. Here's why they did so poorly.

Energizer runs out of juice

Shares of Energizer Holdings fell 6% after the battery maker got negative comments from Wall Street analysts. JPMorgan downgraded Energizer stock from neutral to underweight, reducing its price target by $9 per share to $36. Energizing isn't selling as many units in some of its battery lines as it has in the past, according to industry data that the analyst company observed, and the fact that a major shareholder will have the ability to sell off its stake in Energizer at the beginning of next year is also weighing down sentiment. Longer-term, JPMorgan sees some reasons for optimism, but recent results suggest that it'll be tough for Energizer to overcome short-term headwinds along the way.

Pink stuffed bunny with black sunglasses labeled Energizer.

Image source: Energizer Holdings.

Gran Tierra deals with new challenges

Gran Tierra Energy saw its stock drop 11.5% after the Calgary-based company gave its latest operations update. Gran Tierra said that it achieved record drilling results at a key facility in Colombia, but a combination of equipment failures and local unrest led it to shut in some of its oil wells in the country's Acordionero region. The company tried to put the difficulties in context, referring to them as "temporary operational issues" and telling shareholders that it's taking "necessary steps to get production back on track." Nevertheless, investors seem concerned that the situation in Colombia remains volatile and could cause further problems down the road.

Green Plains stops its dividend

Finally, shares of Green Plains lost 9%. The ethanol producer said that it would suspend its cash dividend immediately, eliminating its $0.12-per-share payout that had given the stock a yield approaching 4%. Green Plains noted that it intends to use the savings from not having to pay a dividend toward investing in its Project 24 initiative, which involves buying back stock and deploying new technology in the high-protein feed area. The company also hopes to cut costs by building greater efficiency, and a refinancing effort should buy Green Plains more time to improve the quality of its balance sheet and make it easier to go forward with business-enhancing moves that it hopes will pay off in the long run.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Gran Tierra Energy Inc. Stock Quote
Gran Tierra Energy Inc.
GTE
$1.49 (-1.32%) $0.02
Energizer Holdings, Inc. Stock Quote
Energizer Holdings, Inc.
ENR
$31.11 (-3.29%) $-1.06
Green Plains Inc. Stock Quote
Green Plains Inc.
GPRE
$33.00 (-0.39%) $0.13

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/21/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.