Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Time Warner, Walt Disney and SolarCity Among the Trending Stocks on Wednesday

Page 1 of 2

Wall Street has rebounded on Wednesday amid Janet Yellen’s comments during today’s Financial Services committee, which stressed that the tightening financial conditions due to stock market declines, the uncertainty about China’s economy, and the revaluation of credit risks could jeopardize the U.S economy. In this environment of uncertainty, several stocks are trending in today’s session on various pieces of news. Among them are Time Warner Inc (NYSE:TWX), Walt Disney Co (NYSE:DIS), SolarCity Corp (NASDAQ:SCTY), Panera Bread Co (NASDAQ:PNRA), and Anheuser Busch Inbev SA (ADR) (NYSE:BUD). In addition to recapping the news, we’ll assess the latest hedge fund sentiment towards these stocks.

Hedge fund sentiment is an important metric for assessing long-term profitability. At Insider Monkey, we track over 700 hedge funds, whose quarterly 13F filings we analyze to determine their collective sentiment towards several thousand stocks. However, our research has shown that the best strategy is to follow hedge funds into their small-cap picks. This approach can allow monthly returns of nearly 95 basis points above the market, as we determined through extensive backtests covering the period between 1999 and 2012 (read more details here).

Back to Wednesday’s movers, shareholders of Time Warner Inc (NYSE:TWX) have endured a rocky day, as the stock opened down by nearly 10% before rebounding back to even on the day, only to slip back down by 3% now in afternoon trading. The heavy trading activity comes after the company reported fourth quarter EPS of $1.06 on revenue of $7.08 billion, beating profit estimates by $0.05 per share but missing revenue expectations by $450 million. Time Warner’s revenue declined by 5.9% year-over-year, due to a decrease in its Warner Bros. business, which was partially offset by the performance of Home Box Office (HBO) and Turner. The former’s revenue declined by 13% to $3.3 billion while the latter’s revenue inched up by 6% to $1.41 billion. Moreover, Time Warner raised its quarterly dividend to $0.4025 per share from its prior dividend of $0.35, payable on March 15, 2016. Moreover, management expects full-year adjusted EPS in the range of $5.30 to $5.40, stronger than the Street’s expectations of $5.26.

Among the funds we follow, 69 reported long positions in Time Warner Inc (NYSE:TWX) as of the end of September, up by one fund from a quarter earlier. Daniel S. Och’s OZ Management and Ken Griffin’s Citadel Investment Group are both long Time Warner.

Follow Time Warner Inc. (NYSE:TWX)
Trade (NYSE:TWX) Now!

In other news, Walt Disney Co (NYSE:DIS) is down by 4.5% as investors become more pessimistic, despite the company beating estimates for earnings and revenue with its latest financial report. For its first quarter of fiscal year 2016, Walt Disney reported EPS of $1.63 on revenue of $15.24 billion, exceeding earnings estimates by $0.18 per share and revenue estimates by $490 million. However, the stock has fallen due to concerns over the performance of the company’s ESPN and TV network business. As a consequence, several analysts have lowered their price targets on the Disney’s stock. Among them, analysts at Nomura, JPMorgan Chase, and FBR & Co. all trimmed their price targets, to $110, $118 and $101, respectively.

Walt Disney Co (NYSE:DIS) lost popularity in the third quarter of 2015, as out of the 730 funds that we track, 48 funds held shares of the company on September 30, down from 60 funds on June 30. Jacob Rothschild‘s RIT Capital Partners held 509,000 Walt Disney shares valued at $52.03 million at the end of September, which accounted for a 12.14% stake of the fund’s public equity portfolio.

Follow Walt Disney Co (NYSE:DIS)
Trade (NYSE:DIS) Now!

We check out the other three trending stocks on the following page.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!