The S&P 500 opened higher on Wednesday as crude prices are above $50 and many traders expect Britain to remain inside the EU tomorrow.
Among the stocks trending this morning are InterDigital, Inc. (NASDAQ:IDCC), QEP Resources Inc (NYSE:QEP), KB Home (NYSE:KBH), HP Inc (NYSE:HPQ), and LendingClub Corp (NYSE:LC). Let’s find out why each stock is in the spotlight and see how the world’s greatest investors are positioned among the five stocks.
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InterDigital Guides Lower
InterDigital, Inc. (NASDAQ:IDCC) is in the spotlight after the company posted guidance for second quarter revenue of $75 to $77 million, which is below the analyst’s consensus estimate of $85.93 million. On the plus side, the revenue guidance is comprised almost entirely of recurring revenue and it does not include the amounts collected from Huawei in the second quarter of 2016 that were due and outstanding under the arbitration awards at the time of payment. Among the funds we track, 21 funds owned shares of InterDigital, Inc. (NASDAQ:IDCC) at the end of the first quarter, up by two funds from the previous quarter.
QEP Resources Expands
With higher oil prices comes the inevitable M&A deals. QEP Resources Inc (NYSE:QEP) became the latest energy company to make an acquisition by acquiring additional oil properties in the core of the Permian Basin for around $600 million. The properties are located in Martin County, Texas, and will increase QEP’s Permian potential drilling locations by over 50%. Current net production in the 9,400 net acreage is 1,400 BOE per day, of which 83% is crude oil. Net proved reserves amount to around 76 MMBoe. QEP will commence an underwritten public offering of 20 million shares of common stock and grant underwriters a 30-day option to purchase up to 3 million additional shares to finance the acquisition. Given the dilution, QEP shares have slid by around 6% so far. Among the funds we track, 30 funds owned $380.28 million worth of QEP Resources Inc (NYSE:QEP)’s stock, which accounted for 15.20% of the float on March 31, versus 27 funds and $320.24 million, respectively, a quarter earlier.
On the next page, we examine KB Home, HP Inc, and LendingClub Corp.