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Shares of Texas Instruments, Dunkin, Aetna, Cabelas, and Raytheon Being Propelled by Earnings, Other News

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U.S stocks are moving in both directions on Thursday afternoon, with the S&P and Nasdaq both up slightly, helped by tech stocks, while the Dow is down by roughly 0.24% due to weakness in certain key tech stocks. As one of the most earnings-heavy weeks of the quarter approahces its end, we’ll take a look into the results posted by Texas Instruments Incorporated (NASDAQ:TXN), Dunkin Brands Group Inc (NASDAQ:DNKN), Aetna Inc (NYSE:AET), Cabelas Inc (NYSE:CAB) and Raytheon Company (NYSE:RTN), all of which are on the move today on the back of their earnings calls. In addition, we’ll analyze what the hedge funds in our database think about these companies long-term.

Academic research has shown that certain insider purchases historically outperformed the market by an average of seven percentage points per year. This effect is more pronounced in small-cap stocks. Another exception is the small-cap stock picks of hedge funds. Our research has shown that imitating the 15 most popular small-cap stocks among hedge funds outperformed the market by nearly a percentage point per month between 1999 and 2012 (read more details here).

Texas Instruments Surges on Strong Results and Guidance

Let’s start with Texas Instruments Incorporated (NASDAQ:TXN), which is up by almost 1% in Thursday trading following the announcement of the company’s first quarter financial results. After the market closed on Wednesday, the large-cap semiconductor maker reported EPS of $0.65 on revenue of $3 billion, beating the Street’s consensus estimates by $0.03 and $20 million, respectively. Management said the main catalyst for the beat were its automotive products, and industrial and communications equipment. Also noteworthy is that the firm’s gross margin hit a record 60.6% in the first quarter. Guidance for the ongoing quarter was also encouraging, with Texas Instruments Incorporated (NASDAQ:TXN) expecting revenue between $3.07 billion and $3.33 billion and EPS of $0.67-to-$0.77, topping consensus second quarter estimates at the mid-point of both ranges.

38 funds among those we track were long Texas Instruments at the end of the fourth quarter of 2015.

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Dunkin Falls in Spite of Top and Bottom-Line Beats

Next up is Dunkin Brands Group Inc (NASDAQ:DNKN), a company that counts the support of several big hedge funds, including Eashwar Krishnan’s Tybourne Capital Management, which held ownership of 4.85 million shares of the company after boosting its stake by 55% over the fourth quarter.

Dunkin Brands Group Inc (NASDAQ:DNKN) is trading down by approximately 0.6% on Thursday afternoon, even though the company reported top and bottom-line beats this morning. Before the bell rang, the quick service restaurants franchisor posted EPS of $0.44, $0.01 above the Street’s consensus, on revenue of $189.78 million, which beat estimates by $1.78 million. Management also declared a $0.30 per share quarterly dividend, in-line with the previous payout. Interestingly, same-store sales at U.S Dunkin’ Donuts stores surged by 2% during the quarter, largely driven by “growth in beverages and breakfast sandwiches, along with price and favorable weather,” CEO Nigel Travis explained.

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We study the trading activity and the news behind it in three other stocks on the next page.

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