It’s been a relatively quiet day on Wall Street so far as the S&P 500 has opened in the green and has stayed flat in morning trading. Some traders are unwilling to make any moves until the outcome of tomorrow’s Brexit vote is certain.
In this article, we take a look at the reasons why five stocks, Ocwen Financial Corp (NYSE:OCN), Paratek Pharmaceuticals Inc (NASDAQ:PRTK), Carolina Bank Holding Inc. (NC) (NASDAQ:CLBH), First Bancorp (NASDAQ:FBNC), and Deutsche Bank AG (USA) (NYSE:DB), are in the spotlight and see how hedge funds and other investors we track are positioned towards them.
While there are many metrics that investors can assess in the investment process, the hedge fund sentiment is something that is often overlooked. However, hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor to beat the S&P 500 by around 95 basis points per month (see the details here).
Ocwen Rises on Fitch Affirmation
Ocwen Financial Corp (NYSE:OCN) shares are more than 2% higher after credit ratings agency Fitch affirmed Ocwen’s long-term issuer default ratings as ‘B-‘. The ratings agency also affirmed Ocwen’s senior unsecured notes at ‘CC/RR6’ and said its ratings outlook is stable. Ocwen is expected to cut $300 million in operational costs this year and has $280.5 million in unrestricted cash as of March 31, 2016. Shares of Ocwen are nevertheless down 76% year-to-date as the company struggles to remain profitable. A total of 19 funds from our database had a long position in Ocwen Financial Corp (NYSE:OCN) at the end of March.
Paratek Down on Offering
Paratek Pharmaceuticals Inc (NASDAQ:PRTK) shares are 1.5% in the red this morning after the company priced its previously announced public offering of 4.25 million shares of common stock at $13 per share before underwriting discounts and commissions. Paratek has also granted underwriters the 30-day option to buy up to 637,500 additional shares of common stock. Net proceeds from the offering is expected to amount to around $51.4 million. Of the 766 elite funds we track, 10 funds owned $64.8 million worth of Paratek Pharmaceuticals Inc (NASDAQ:PRTK)’s stock, which accounted for 24.40% of the float on March 31, versus 11 funds and $71.01 million, respectively, on December 31.
On the next page, we examine Carolina Bank Holding, First Bancorp, and Deutsche Bank AG.