Hedge Funds are Bullish on Just One of These Three Upgraded Stocks

Twitter Inc (NYSE:TWTR)’s stock is up 1.75%, after Axiom Securities has upgraded ‘Hold’ from ‘Buy’ but reduced its price target to $37 from $40 per share. The new rating from Axiom Securities comes as Twitter has named Jack Dorsey, the site’s co-founder and current CEO of Square, Inc., as the permanent CEO of the company, after former CEO Dick Costolo had stepped down from the helm and it was announced that he would also be leaving the company’s board of directors once a new CEO is named. There are 26 analysts who rate Twitter’s stock as a ‘Hold’, while 16 analysts have a ‘Buy’ rating, and one analyst rates the stock a ‘Strong Buy’. The consensus price target on the stock is just above $41.

Like AutoZone, however, hedge funds are not very fond of Twitter Inc (NYSE:TWTR). At the end of the second quarter, 47 funds from our database were long Twitter, 17 less than a quarter earlier. The value of their stakes fell by by almost 60% during the quarter (partly explained by a 27.68% dip in the stock’s price) to $701 million, equal to some 2.90% of the company at the end of June. Daniel Benton’s Andor Capital Management owned 1.5 million shares of Twitter at the end of June, after having cut his stake by 63% from the preceding quarter.

Meanwhile, Toll Brothers Inc (NYSE:TOL)’s stock is up over 3% after Susquehanna upgraded it to ‘Positive’ from ‘Neutral’. The analyst has a price target of $42 per share, an upside of some 20%. There is one analyst with a ‘Sell’ rating on the stock and nine other analysts have a ‘Hold’ rating and another eight rate the stock as a ‘Buy’. The consensus price target on the stock is nearly $40.

The funds from our database held 8.50% of Toll Brothers’ outstanding stock at the end of June, the value of their positions amounting to $569.85 million, up by 6.95% on the quarter, despite an almost 3% dip of the stock during the period. There were 33 hedge funds in our database long Toll Brothers on June 30, up by three from March 31. Ken Heebner’s Capital Growth Management owned 6.3 million shares of Toll Brothers at the end of June.

Disclosure: None