The markets are trading in negative territory today despite strong factory production data and a solid quarterly earnings announcement from Bank of America. The negative sentiment could be due to the Fed raising a warning about persistent low interest rates, which could be interpreted to signal an upcoming interest rate hike.
The markets are also being affected by several stocks making moves today. Some of the prominent stocks moving the markets today are Golar LNG Limited (USA) (NASDAQ:GLNG), Groupon Inc. (NASDAQ:GRPN), ICICI Bank Ltd (ADR) (NYSE:IBN), Take-Two Interactive Software Inc. (NASDAQ:TTWO), and Quality Systems Inc. (NASDAQ:QSII). In this article, we’ll discuss the news behind these stocks’ moves and take a look at what hedge funds think of each stock.
Imitating hedge funds and other institutional investors can help identify some of the most profitable stocks on the market. However, our extensive research that covered the period between 1999 and 2012, showed that the best approach is to follow these investors into their small-cap stocks. Our backtests showed that the 15 most popular small-cap stocks among hedge funds managed to generate a monthly alpha of 81 basis points, versus an alpha of 0.7 percentage points posted by their top 50 large-cap picks (see more details here).
Golar LNG Limited (USA) (NASDAQ:GLNG) is trading up by 2.90% after Golar Power, of which it owns 50%, announced the inking of a 25-year FSRU deal, reaching its final investment decision on the Porto de Sergipe Project, which entails the project company, CELSE, entering into a lump sum turnkey EPC agreement with General Electric Company (NYSE:GE) for the construction, maintenance and operation of a 1.5 GW combined cycle power plant in Brazil. The deal is expected to contribute $39 million in annual EBITDA. Golar Power owns 50% of the Sergipe Project, up from 25% owned previously. Among the funds that we track, 20 were long $268 million worth of Golar LNG Limited (USA) (NASDAQ:GLNG)’s stock at the end of June, having amassed 18.50% of its outstanding shares.
Groupon Inc. (NASDAQ:GRPN)‘s stock is 1.6% in the green on the news of a rating upgrade from Wedbush. The stock is now rated ‘Outperform’, up from its previous rating of ‘Neutral’. The firm’s price target on the stock was also raised to $6.50 from $4.50. Wedbush’s report states that the stock has upside potential as the company’s deal inventory is steadily improving. In addition, Groupon is undervalued compared to its peers and its website is experiencing an increase in traffic. The number of funds from within our hedge fund database long Groupon Inc. (NASDAQ:GRPN) stood at 23 at the end of June.
Three more of the market’s big movers are discussed on the next page.