Although the markets ended on a dour note for the week due to a softer-than-expected jobs report, it could have been worse, as the major indexes were each considerably lower at one point in Friday’s session than where they ended the day at.
In this article, we’ll uncover why Suncor Energy Inc. (USA) (NYSE:SU), Mylan NV (NASDAQ:MYL), Boeing Co (NYSE:BA), Alphabet Inc (NASDAQ:GOOG), and Oil-Dri Corporation of America (NYSE:ODC) are making headlines heading into the weekend and check in with the smart money to see what top hedge funds think of each company.
At Insider Monkey, we track around 750 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on, can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see the details here).
One integrated producer is trending today due to some conflicting reports. On the one hand, according to Reuters’ sources, Suncor Energy Inc. (USA) (NYSE:SU) is considering selling its Petro-Canada retail gasoline station division. A sale of its 1,500-gas-station segment would potentially bring in around CAD8.4 billion ($6.32 billion), and provide the company with much-needed liquidity. Suncor Energy, on the other hand, has denied that it is considering such a sale at the current time, saying through a spokesperson that “retail is part of our integrated model as it provides a channel of sale for much of our refinery production.” Warren Buffett‘s Berkshire Hathaway cut its stake in Suncor Energy Inc. (USA) (NYSE:SU) by 26% in the second quarter to just over 22.2 million shares on June 30.
Mylan NV (NASDAQ:MYL) shares have surged by 10% in after-hours trading Friday after the company agreed to settle with the Department of Justice and other government agencies concerning the previous classification of EpiPens for the purposes of the Medicaid Drug Rebate program. According to the terms, Mylan will pay $465 million in return for resolution of all potential rebate liability claims by state and federal governments as to whether EpiPen should have been classified as an innovator drug for CMS purposes and subject to a higher rebate formula. In addition, Mylan has also announced that it expects full year 2016 adjusted EPS to be between $4.70 and $4.90, down from the previous range of $4.85-to-$5.15. Mylan remains committed to trying to achieve $6.00 in adjusted EPS in 2018. The number of funds in our system with holdings in Mylan NV (NASDAQ:MYL) fell by seven during the second quarter to 44 at the end of June.
On the next page we’ll find out why Boeing, Alphabet, and Oil-Dri Corporation of America are in the headlines.