Why Are Investors Paying More For These 4 Stocks Today?

Private equity firm and global asset manager American Capital Ltd. (NASDAQ:ACAS) has jumped up by 7.55% following its decision to undergo a “full strategic review of all alternatives.” The company retained Goldman Sachs & Co. and Credit Suisse Securities (USA) LLC to execute the review, which includes a potential sale of the company, or all or a portion of its business segments.

“We have generated a 16% annualized growth rate in both our book value and price per share over the five years ended September 30, 2015,” American Capital Chairman and CEO Malon Wilkus said. “Nonetheless, we continue to trade at a meaningful discount to our book value, even as we progress with our plans for the spin off, which is intended to unlock shareholder value.  Therefore, I am fully supportive of this strategic review, which will allow us to realize the optimal value for our shareholders.”

In addition, American Capital Ltd. (NASDAQ:ACAS)’s board of directors approved the expansion of its current stock buyback program to a range of $600 million-to-$1 billion from the prior range of $300 million-to-$600 million. That program, which was initiated in the third quarter, will be completed by June 30, 2016.

36 funds in our database held a total of 33.10% of American Capital shares through the end of September.  The top investor from Insider Monkey’s database was Steven Tananbaum of Goldentree Asset Management, which held 4.9 million shares of American Capital valued at $59 million.

Deere & Company (NYSE:DE), the maker of parts and provider of services for those who are “linked to the land,” has risen by 2.95% following strong profits in its latest earnings report amid global market weakness.

Net income attributable to the company was $351.2 million, or $1.08 per share, for the fourth quarter of fiscal year 2015, which ended October 31, compared with $649.2 million, or $1.83 per share, for the same period of fiscal year 2014. Meanwhile, net sales from the worldwide equipment operations of Deere & Company (NYSE:DE) declined by 26% for the quarter and 22% for the full fiscal year compared with the same periods in fiscal year 2014.

“Sales and earnings for the year were the sixth-highest in company history, a notable achievement in light of the challenging market conditions we experienced. The company’s performance benefited from the adept execution of our business plans and disciplined cost management,” Deere & Co. Chairman and CEO Samuel Allen said. “As a result, Deere remains well-positioned to serve its customers while continuing to make investments in quality and innovation that are designed to drive growth in the future.”

35 out of 730 funds which Insider Monkey tracks held a combined 10.90% of the company’s outstanding stock. Warren Buffett of Berkshire Hathaway holds 17 million shares of the company valued at $1.26 billion.

Disclosure: None