Hedge Fund Sentiment Says To Steer Clear Of These 2 Trending Stocks

Let’s check out RPM International Inc. (NYSE:RPM) now, which operates in the basic materials sector. RPM was not as fortunate as Acuity Brands, as it missed estimates for both its quarterly revenue and earnings. RPM International reported earnings of $0.74 per share for its first quarter of fiscal year 2016, missing estimates by $0.08. Its revenue of $1.27 billion was also $30 million short of analysts’ expectations. RPM also updated its fiscal year 2016 guidance to earnings of $2.50 per share, below estimates of $2.56. The resulting disappointment has not been overly hard on the stock however, as it has fallen only marginally in trading this morning.

The company is optimistic about its performance and market share growth in the remaining quarters of the year, citing the strong U.S dollar coupled with rainy weather in North America as reasons for its “tepid” first quarter results. The smart money we follow won’t be holding its collective breath, as it’s not particularly bullish on the company. As of June 30, 23 investors held $154.71 million of RPM International Inc. (NYSE:RPM)’s shares, just 2.40% of its outstanding shares. The number of investors and the value of their combined holdings also declined from 29 and $217.76 million respectively during the second quarter, with the decline in value occurring despite shares rising slightly during the period.

Anand Parekh’s Alyeska Investment Group was an investor who was bullish on the company, owning 856,842 shares, up by 23% during the quarter. SG Capital Management and Adage Capital Management also opened positions of at least 200,000 shares each during the quarter. On the other hand, Englander also closed a long position in this stock during the second quarter, one which had contained 621,131 shares on March 31. Shares of RPM were down by 14% in the third quarter.

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