Why Organovo, eBay, Mattel, Alphabet, and More Are in the Spotlight

With the final Presidential debate now over, it’s officially the final lap for Presidential candidates Hillary Clinton and Donald Trump as the November 8 election approaches.

Among the equities trending on Thursday are Organovo Holdings Inc (NASDAQ:ONVO), eBay Inc (NASDAQ:EBAY), Mattel, Inc. (NASDAQ:MAT), Alphabet Inc (NASDAQ:GOOG), and CBS Corporation (NYSE:CBS). Let’s examine why each stock is in the spotlight and use the latest SEC data to analyze relevant hedge fund sentiment towards these stocks.

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).

Organovo Holdings Inc (NASDAQ:ONVO) shares are down sharply after it filed a preliminary prospectus supplement that said the company is executing a public offering of stock. The terms of the offering were not released in the preliminary report, though it was revealed that Evercore and Jefferies will be the book-running managers for the deal. Richard Driehaus‘ Driehaus Capital established a new stake of 57,152 shares in Organovo Holdings Inc (NASDAQ:ONVO) during the second quarter .

eBay Inc (NASDAQ:EBAY) is off by more than 7% in extended-market trading after the e-commerce giant reported earnings of $0.45 per share on revenue of $2.22 billion for its third quarter, beating the Street’s estimates by $0.01 on the bottom-line and $30 million on the top-line. Sales rose by 5.7% year-over-year as gross merchandise volume rose by 3% on an as-reported basis and by 5% on an FX-neutral basis. The company also added over one million active buyers across its platforms, bringing its total to 165 million global active buyers. Although its third quarter numbers were solid, traders could be selling eBay due to guidance. For the fourth quarter, the company expects EPS of $0.52-to-$0.54, versus estimates of $0.54, while revenue is expected to be between $2.36 billion and $2.41 billion, compared to the Street’s expectation of $2.40 billion. Of the 749 hedge funds that we track which filed 13Fs for the June quarter, 58 owned $1.73 billion in eBay Inc (NASDAQ:EBAY) holdings on June 30, which accounted for 6.40% of the float.

On the next page we’ll find out why Mattel, Alphabet, and CBS are trending.

Mattel, Inc. (NASDAQ:MAT) shares have surged by over 5% in extended-market trading after the toy maker reported its third quarter results. For the period, Mattel earned $0.70 per share on revenue of $1.80 billion, largely in-line with the Street’s estimates of $0.71 per share in earnings and $1.77 billion in sales. Although sales rose by only 0.6% year-over-year on an as-reported basis, they increased by 2% on a constant currency basis. Traders were also heartened by Mattel’s operating margin, which inched up by 90 basis points to 17.7%.

“Our core brands continue to show improved strength and vibrancy, contributing to very encouraging and broad-based top-line momentum. And we continued to manage costs effectively, while making important investments in brand building, commercial excellence and emerging market expansion. Overall, our strategies are generating good progress on many fronts, and while we still have a critical fourth quarter to execute, we remain broadly on track to deliver on our full-year outlook,” CEO Christopher Sinclair said.

34 funds tracked by Insider Monkey were long Mattel, Inc. (NASDAQ:MAT) at the end of June, down by three quarter-over-quarter.

According to the Wall Street Journal, Alphabet Inc (NASDAQ:GOOG) recently scored a major victory in its quest to capture cord-cutting market-share. Alphabet’s Google unit has persuaded CBS Corporation (NYSE:CBS) to offer broadcast content through its planned web TV service, which will likely launch early next year. Although CBS is the first major television network to be included, Alphabet’s Google division is either close to similar agreements, or is in advanced talks for channels owned by Walt Disney Co (NYSE:DIS), NBCUniversal, and 21st Century Fox. According to the WSJ, the web TV service will be named ‘Unplugged’ and will cost between $25 and $40 per month.

126 funds that we track owned Class C shares of Alphabet Inc (NASDAQ:GOOG) at the end of the second quarter, off by 16 funds from the end of the previous quarter, while 135 owned its Class A shares, down by 20 quarter-over-quarter. Meanwhile, 59 funds were long CBS Corporation (NYSE:CBS) at the end of the second quarter, owning 8.00% of its float.

Disclosure: None