After experiencing a rebound last week, markets were back to their declining way on Monday, with all major U.S stock indexes down slightly. Some of the stocks driving the losses included Nokia Corporation (ADR) (NYSE:NOK), Kinder Morgan Inc (NYSE:KMI), Micron Technology, Inc. (NASDAQ:MU), Alibaba Group Holding Ltd (NYSE:BABA), and Xerox Corp (NYSE:XRX), all of which are tumbling today. Let’s take a look at the events behind the drops, and into what the hedge funds in our database think about these companies.
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Back to Monday’s decliners, there’s Nokia Corporation (ADR) (NYSE:NOK), which is trading down almost 12% in the early afternoon. Earlier today, the company announced that it received a positive decision from a patent arbitration case involving Samsung Electronics. While the amount of money awarded was not disclosed, management did say that between 2016 and 2018, inclusive, it expects the company to receive approximately EUR 1.3 billion (about $1.4 billion) in cash “related to its settled and ongoing arbitrations in Nokia Technologies, including this award.” However, it seems like that figure disappointed investors.
On top of the unsatisfactory guidance, Nokia Corporation (ADR) (NYSE:NOK) was downgraded by Merrill Lynch to ‘Buy’ from ‘Neutral’ this morning, while Canaccord cut its price target on the stock to $6.50 from $10.00. These research firms are now the only ones bearish on Nokia. Over the latest fully reported 13F filing quarter (the third quarter of 2015), Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital, which used to be the largest investor in the company within our system, sold all of its 30.89 million shares.
Next up is Kinder Morgan Inc (NYSE:KMI), down by over 9% in Monday trading. Two events were probably driving this decline. On the one hand, oil prices fell more than 4.6% today. On the other hand, 24/7 Wall St. attributed the tumble to the closing of a $350 million deal with BP plc (ADR) (NYSE:BP), through which Kinder Morgan will acquire 15 refined product terminals.
Negative news aside, it seems like hedge funds are bullish on Kinder Morgan Inc (NYSE:KMI). Over the latest reported quarter, Bob Peck and Andy Raab’s FPR Partners boosted its position in the stock by 22%, taking its holding to almost 6.00 million shares, worth more than $165 million.
On the next page, we will examine why Micron Technology, Inc. (NASDAQ:MU), Alibaba Group Holding Ltd (NYSE:BABA), and Xerox Corp (NYSE:XRX) are also falling on Monday.