WISCONSIN (CoinChapter.com) — US markets were divided after Chinese data showed a downturn in services activity on Tuesday, increasing worries about the global economy.
Tuesday’s data from a private survey revealed China’s services sector has been expanding at the slowest rate in eight months. Beijing has recently proposed new stimulus measures, including aid for China’s struggling real estate market and establishing a government agency to assist the private sector.
Here are the five stock market losers:
Trinseo (NYSE: TSE)
Trinseo (NYSE: TSE), a provider of specialty material solutions, had no news today but four weeks ago reported disappointing earnings. On August 3, 2023, the company released its Second Quarter 2023 Financial Results, revealing a challenging period.
Net sales for the second quarter saw a significant drop of 32% compared to the previous year’s period. The decrease was attributed to lower sales volumes across all reporting segments, driven by ongoing customer destocking and a general weakness in underlying demand.
The pass-through of lower raw material costs also resulted in a price decrease of 17%. In addition, Trinseo’s financial results included a substantial non-cash impairment charge of $349 million associated with the Engineered Materials reporting unit’s goodwill balances established in 2021.
WeWork Inc. (NYSE: WE)
Last week Friday, September 1, 2023, WeWork Inc. (NYSE: WE), a global provider of flexible spaces, completed its previously announced 1-for-40 reverse stock split. The split, which pertains to its Class A and Class C Common Stock, took effect the same day.
As of today’s market opening, WeWork’s Class A Common Stock commenced trading on a split-adjusted basis.
The decision to effect the reverse stock split was driven by the company’s initiative to regain compliance with the $1.00 per share minimum closing price requirement. Shareholders sold on the news, bringing the stock down to $3.53 (19.77%).
Inspire Veterinary Partners Inc. (NASDAQ: IVP)
Inspire Veterinary Partners Inc. (NASDAQ: IVP), a provider of pet healthcare services across the United States, announced its intent to acquire full ownership of two animal hospitals.
The acquisition announcement was intended to symbolize Inspire’s strategic expansion into Oregon and mark the introduction of the company’s first emergency veterinary clinic and rehabilitation hospital in its network.
The deal will also include acquiring real estate associated with the hospitals. However, the proposed acquisitions did not impress shareholders enough, as the stock sold off by 18.50%.
Manchester United PLC (NYSE: MANU)
The US-listed shares of Manchester United PLC (NYSE: MANU) experienced a significant drop on Tuesday, marking the most considerable single-day sell-off in the company’s history. This substantial decrease, which saw the club’s shares down 17.75%, followed reports of Manchester United’s potential removal from the market.
The previous record drop of 13.8% occurred at the onset of the COVID-19 pandemic in March 2020. The Glazer family, based in Florida, had previously indicated in November 2022 that a sale of the club was under consideration.
Hongli Group Inc. (NASDAQ: HLP)
Hongli Group Inc. (NASDAQ: HLP) has not had any significant news in four months.
However, it realized a significant 17.54% drop in share price today. The most recent news release was on May 2, 2023, when the company disclosed that the underwriter fully exercised the over-allotment option in its initial public offering,
That move resulted in the acquisition of an additional 309,375 ordinary shares at $4.00 per share, amassing total gross proceeds of $1.23 million before accounting for underwriting discounts and commissions.
