Stocks Going Viral Today: Staples, Nektar Therapeutics, Sealed Air Corp, More

Stocks indexes have jumped higher today amid better-than-expected earnings from Netflix, Inc. (NASDAQ:NFLX) and Goldman Sachs Group Inc (NYSE:GS), and a rally in oil prices. September’s consumer-price data also provided the markets with a jolt this morning, showing a 0.3% gain in September, fueled by gas and rent.

Meanwhile, some stocks including Danone SA (ADR) (OTCMKTS:DANOY), Resources Connection, Inc. (NASDAQ:RECN), Staples, Inc. (NASDAQ:SPLS), Nektar Therapeutics (NASDAQ:NKTR) and Sealed Air Corp (NYSE:SEE) are making moves of their own today. We’ll take a look at the factors behind this movement in this article and also analyze hedge fund sentiment towards each of these companies.

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Danone Misses Estimates

Shares of the world’s largest yogurt maker Danone SA (ADR) (OTCMKTS:DANOY) are losing a small amount of value this morning after the company missed third quarter revenue estimates amid regulatory changes in China, which hit sales of the company’s baby food. Sales tumbled by 1.8% to €5.54 billion ($6.10 billion) during the quarter, while comparable sales were up by 2.1%, missing analysts’ forecast of 2.2% growth. Baby food sales increased by 1.7%, significantly down from the second quarter’s 7.2% growth. In a statement, the CEO of the Paris-based food company, Emmanuel Faber, said Danone is currently facing a “volatile” environment, and that it is focusing on strengthening its model and margins instead of rushing for short-term sales growth. For the full 2016 year, Danone expects comparable sales growth of 3%-to-5%, and a rise of 50-to-60 basis points in operating margins. Ken Fisher’s Fisher Asset Management owns a stake in Danone SA (ADR) (OTCMKTS:DANOY) of 252,010 shares as of the end of the third quarter.

Resources Connection Enters Into Credit Agreement

Resources Connection, Inc. (NASDAQ:RECN) is in the spotlight today, being up by over 12.5% after an SEC filing disclosed that the company and its domestic subsidiaries entered into a credit agreement of $120 million secured revolving loan with Bank of America. The credit involves a $90 million revolving facility, which includes a $5 million sublimit for the issuance of standby letters of credit, and a $30 million reducing revolving facility, any amounts of which may not be re-borrowed after being repaid. The proceeds of the Credit Facility will be used for the company’s working capital, clearing debts, potential acquisitions, and purchasing of the company’s common stock. The transaction is slated to be matured on October 17, 2021. At the end of the second quarter, 12 funds tracked by Insider Monkey were bullish on Resources Connection, Inc. (NASDAQ:RECN).

Move to the next page to read about the rest of Tuesday’s hottest stocks.

Cerberus Capital Management to Acquire Staples’ European Stores

Investors are closely watching Staples, Inc. (NASDAQ:SPLS) today after the Daily Telegraph claimed that Stephen Feinberg’s Cerberus Capital Management is in talks to acquire the company’s European stores in a “rescue” deal. The source said that the deal pays a “nominal sum” for Staples’ stores, which include those in the UK. The Massachusetts-based office supplies company’s business in the UK has been struggling lately. Earlier this year, a U.S. federal judge blocked the planned merger of Staples and Office Depot Inc (NASDAQ:ODP), crushing the $6 billion deal, which could have resulted in an industry giant. A total of 33 funds tracked by Insider Monkey were long Staples, Inc.(NASDAQ:SPLS) at the end of the June quarter.

Nektar Therapeutics Announces Underwritten Public Offering

San Francisco-based biopharmaceutical company Nektar Therapeutics (NASDAQ:NKTR) is in the news after it announced an underwritten public offering of $175 million of shares of its common stock. Nektar said that it will grant the underwriters of the offering a 30-day option to purchase up to an additional $26.25 million worth of shares. J.P. Morgan is the sole book-running manager in the offering. A statement from the company said that the net proceeds from the transaction will be used for general corporate purposes, including R&D and working capital. Nektar shares have shed 8% of their value this morning. Drew Cupps’ Cupps Capital Management was one of 17 funds in our system with a long position in Nektar Therapeutics (NASDAQ:NKTR) as of the end of the second quarter.

Sealed Air to Spinoff One-Third of Company

Sealed Air Corp (NYSE:SEE)’s stock has been volatile today after the company said that it would spinoff around one-third of its operations. The packaging and hygiene solutions company will spin-off its cleaning products unit Diversey Care, which it acquired back in 2011, and its food hygiene and cleaning business. The new two outfits will be based in Charlotte, North Carolina. Sealed Air’s CEO said in a statement that the spinoff will allow both businesses to reach their “full potential”. David Cohen and Harold Levy’s Iridian Asset Management owns over 10.7 million Sealed Air Corp (NYSE:SEE) shares as of June 30, one of 46 hedge funds in our database with a stake in the company at that time.

Disclosure: None