Why Did These Stocks Move Higher On Tuesday And Should You Follow The Crowd?

Then there is SAP SE (ADR) (NYSE:SAP), which jumped by over 5% after the morning bell and has been floating around that value throughout today’s session. The largest software company in Europe reported its preliminary results on Tuesday (a week earlier than expected), which included operating income of roughly 1.62 billion euros ($1.84 billion), based on calculations not recognized under international financial reporting standards (IFRS), which topped the highest estimate among analysts of 1.59 billion euros. Its IFRS operating income jumped by an annual 5% to 1.21 billion euros for the third quarter. The company also reaffirmed its full-year operating income outlook of 5.6 billion euros to 5.9 billion euros (a growth of 5% on the year). Such strong results will most likely attract more shareholders from the hedge fund industry, as, so far, they haven’t been paying much attention to the company, preferring its peers like Oracle and IBM. In the last round of 13F filings, nine funds from our database disclosed long positions in SAP SE (ADR) (NYSE:SAP), up by two over the quarter, but the aggregate value of their holdings stood at $559.30 million, which represented 0.70% of the company’s market cap at the end of June (by comparison, the funds we track own over 8% of Oracle).

One oil E&P company whose stock inched up today is Energy XXI Ltd (NASDAQ:EXXI), which is currently trading at around 3.91% in the green. It has more than doubled since September 29, when the company reported its financial results for the fourth quarter and full fiscal year ended June 30, which involved full-year revenue of $1.40 billion, up from $1.15 billion a year earlier and a net loss per share of $25.97, compared to a loss of $0.09 a year earlier. Today’s gains are probably triggered by positive news from the energy sector, such as yesterday’s lift of the oil export ban in the US and an increase in demand forecasted by OPEC countries. Hedge funds from our database also seem to be betting on Energy XXI Ltd (NASDAQ:EXXI), as they have collectively amassed more than 14% of the company during the second quarter, even though the number of funds with long positions declined by one to 18, while the aggregate value of their holdings slid to $35.52 million from $55.39 million. Mark McGoldrick and Jason Maynard’s Mount Kellett Capital Management and Joe Huber‘s Huber Capital Management are the top two shareholders of Energy XXI Ltd (NASDAQ:EXXI) among the funds we track, with positions of 5.92 million shares and 2.90 million shares respectively.

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