Monster Worldwide, Inc. (MWW) Falls 40% to All-time Low – Is this fall really warranted?


Monster Worldwide, Inc. (NYSE:MWW) shares have fallen over 40% today, reaching lows never seen before. The question that many investors are pondering though is, “Is such a drop really warranted?”

Monster Worldwide, Inc. (NYSE:MWW) did report some pretty horrible First Quarter guidance numbers, but their Q4 EPS came in on par with what analysts were expecting ($0.12 per share). Revenue for the quarter missed expectations, but a 40% decline is quite unheard of for a company which has been fairly stable for the past 8 years or so.

Many of us are familiar with the company’s website, and most of us have probably used the site at one point in our lives. We all know that the company won’t be going anywhere anytime soon, thus perhaps such a steep fall, no matter how bad their Q1 guidance looks is unwarranted. As for the guidance, the compamy is expecting to see earnings come in at $0.06 – $0.10 per share, falling well short of the Street’s expecations of $0.13 per share. Additionally FBR Capital has dowgraded the compamy from “Outperform” to “Marketperform, and reduced their price target from $8.00 down to just $3.50. Keep in mind that’s still $1 over what the stock is trading at right now.

While the outlook doesn’t look good for the near term, in the long run, companies like Monster Worldwide, Inc. (NYSE:MWW) usually find a way to recover. The stock is down 40.61% or $1.73 following the news, hitting $2.53 per share. About 7.66M shares traded hands or 622.64% up from the average. MWW has declined 29.47% since July 8, 2015 and is downtrending. It has underperformed the S&P500 by 20.00%.

The institutional sentiment increased to 1.29 in Q2 2015. It’s up 0.03, from 1.26 in 2015Q2. The ratio increased, as 20 funds sold all their Monster Worldwide, Inc. shares they owned while 56 reduced their positions. 31 funds bought stakes while 67 increased their total positions. Institutions now own 86.07 million shares which is 5.55% less than the previous share count of 91.13 million in 2015Q2.

Tcs Capital Management Llc holds 2.6% of its total portfolio in Monster Worldwide, Inc., equating to 500,000 shares. Nokomis Capital L.L.C. owns 1.35 million shares representing 2.48% of their total US portfolio. Moreover, True Bearing Asset Management Lp has 0.87% of their total portfolio invested in the company, equating to 80,000 shares. The Massachusetts-based Portolan Capital Management Llc has a total of 0.83% of their portfolio invested in the stock. Rbf Capital Llc, a California-based fund reported 461,600 shares owned.

Since May 21, 2015, the stock had 0 insider purchases, and 4 sales for a total of $224,044 in net activity. Mcguinness Michael B sold 4,482 shares worth $35,053. Stoever Mark sold 9,604 shares worth $77,034. Langrock James M sold 9,604 shares worth $77,042. Miller Michael Connolly sold 4,482 shares worth $34,915.

Monster Worldwide, Inc. is engaged in connecting people to jobs. The company has a market cap of $233.15 million. The Firm offers services in over 40 countries, providing job seeking, career management, recruitment and talent management capabilities. It currently has negative earnings. The Firm operates in three divisions: Careers-North America, Careers-International and Internet Advertising & Fees.