Here’s Why Traders Are Watching Micron, TeamHealth, Endurance Specialty, Wells Fargo, and More Today

Traders are eagerly watching crude today after yesterday’s API inventory report showed another surprise draw, this time by 7.6 million barrels for last week. Analysts were expecting a build of around 1.5 million barrels instead.

In addition to watching crude, investors are also eagerly watching the price action Micron Technology, Inc. (NASDAQ:MU), TeamHealth Holdings Inc (NYSE:TMH), Wells Fargo & Co (NYSE:WFC), Endurance Specialty Holdings Ltd. (NYSE:ENH), and Universal Logistics Holdings Inc (NASDAQ:ULH). In this article, we’ll take a closer look at each stock and use the latest 13F data to see what the smart money thinks of the five equities.

We believe that imitating hedge funds and other large institutional investors can be helpful in identifying stocks capable of outperforming the broader market. Through extensive research that covered portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see the details here).

Micron Technology, Inc. (NASDAQ:MU) is in the red after the company reported an adjusted loss of $0.05 per share for its fiscal 2016 fourth quarter, beating the Street’s estimate by $0.05. Revenue for the period was $3.22 billion, down by 10.6% year-over-year, and $90 million ahead of estimates. For the full fiscal year, Micron earned an adjusted $0.06 per diluted share on revenue of $12.4 billion. Although the company’s fiscal fourth quarter headline numbers were better-than-expected, some traders may not have liked that DRAM average selling prices inched lower by 6% during the quarter. As for guidance, Micron is anticipating fiscal 2017 first quarter earnings of $0.13-to-$0.21 per share, firmly above the consensus of $0.12 per share, on revenue of $3.55 billion-to-$3.85 billion. John Hurley‘s Cavalry Asset Management established a new stake of 715,150 shares in Micron Technology, Inc. (NASDAQ:MU) during the second quarter, with the position accounting for 10.66% of the value of the fund’s public equity portfolio at the end of June.

TeamHealth Holdings Inc (NYSE:TMH) is in the spotlight today after the company surged by over 16% in late trading on Tuesday on the back of a Dow Jones report that said the company is considering a potential sale and is in talks with various private equity firms. TeamHealth shares haven’t done well in 2016, being down by around 13% year-to-date. Of the 749 hedge funds that we track which filed 13Fs for the June quarter, 25 of them were long roughly 22.3% of TeamHealth Holdings Inc (NYSE:TMH)’s float at the end of the second quarter.

On the next page, we’ll find out why Wells Fargo, Endurance Specialty Holdings, and Universal Logistics Holdings are trending.

The potential bad news just keeps on coming for Wells Fargo & Co (NYSE:WFC), this time courtesy of ratings agency Fitch. Although it affirmed the bank’s ‘AA-/F1+’ rating, Fitch has put the bank’s outlook into the ‘Negative’ category from the previous mark of ‘Stable’.

“The affirmation reflects the company’s superior earnings profile, strong liquidity, and still benign asset quality. Fitch has revised the outlook to Negative given the uncertain impact to WFC’s franchise resulting from the potential reputational damage from the recent regulatory actions and fines related to its sales practices in its Community Banking business line,” Fitch said.

88 funds tracked by Insider Monkey owned $28.44 billion worth of Wells Fargo & Co (NYSE:WFC) shares on June 30, which accounted for 11.80% of the float.

Traders are watching Endurance Specialty Holdings Ltd. (NYSE:ENH) after the insurer’s shares soared by over 35% yesterday due to the news (that has since been confirmed by the company) that it is in advanced discussions with Japanese insurer Sompo Holdings regarding a potential strategic transaction. According to the Nikkei Asian Review, the strategic transaction means a potential sale of Endurance to Sompo. As always, there is no assurance that the discussions will lead to a definitive agreement. The number of funds in our system with long positions in Endurance Specialty Holdings Ltd. (NYSE:ENH) fell by four during the second quarter to 18 at the end of June.

Universal Logistics Holdings Inc (NASDAQ:ULH) is trending after the company provided its third quarter outlook. For the period, Universal Logistics expects to report income from operations in the range of $9.2 million-to-$11.2 million, and total operating sales of $260 million-to-$270 million. The company also anticipates EPS coming in at a range of $0.16-to-$0.20. Universal Logistics expects to report its third quarter financial results after the market close on Thursday, October 27. None of the funds that we track held shares of Universal Logistics Holdings Inc (NASDAQ:ULH) at the end of the second quarter.

Disclosure: None