Why These Five Stocks Are on Investors’ Radars on Thursday

The markets are quiet today as all three indexes are modestly lower and crude is only down by 0.3%.

Among the stocks in the spotlight are Mylan NV (NASDAQ:MYL), Transocean LTD (NYSE:RIG), Netflix, Inc. (NASDAQ:NFLX), Seadrill Ltd (NYSE:SDRL), and Tiffany & Co. (NYSE:TIF). Let’s take a closer look at these companies and see what the smart money investors from our database think about them.

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Mylan Cuts EpiPen Prices

After a blistering New York Times article and Democratic Presidential nominee Hillary Clinton calling for the company to cut prices, Mylan NV (NASDAQ:MYL) announced that it will reduce prices on its EpiPens by as much as 50% in some instances. Although EpiPen is an old product, Mylan has raised the price of the essential epinephrine injection by over 400% over the past few years. The unjustified nature of the price increases attracted political and media scrutiny that led many investors to fear Mylan could undergo a Valeant Pharmaceuticals Intl Inc (NYSE:VRX)-type slide (Mylan shares fell sharply yesterday on the back of those fears). Fortunately, Mylan has nipped the problem in the bud, and its shares are well in the green today. A total of 44 funds from our database had a bullish position in Mylan NV (NASDAQ:MYL) at the end of the second quarter, down by seven from the previous quarter.

Analyst Upgrade at Transocean 

Offshore driller Transocean LTD (NYSE:RIG) is trading higher after analysts at Citi upgraded the stock to ‘Neutral’ from ‘Sell’ and upped its price to $11 per share. The analysts like how Transocean has cut costs and how the company’s backlog is holding up better than many of its peers. However, for the stock to do well in the medium term, Transocean needs oil demand to rise higher and possibly for OPEC to cut production.  Carl Icahn’s Icahn Capital LP owned over 21 million shares in Transocean LTD (NYSE:RIG) on June 30.

On the next page, we examine Netflix, Seadrill Ltd, and Tiffany & Co.
William Blair Likes Netflix 

Netflix, Inc. (NASDAQ:NFLX) is in the spotlight after analysts at William Blair upgraded the stock to ‘Outperform’ from ‘Market Perform’ due to the attractive risk/reward prospects the stock offers. Due to good execution and continued anticipated subscriber growth, the analysts have a $110 per share bear case, $145 base case, and $185 bull case for Netflix by 2020. On the other hand, the smart money isn’t as bullish as William Blair, as the number of funds tracked by us with holdings in Netflix, Inc. (NASDAQ:NFLX) fell by 10 quarter-over-quarter to 54 at the end of June.

Seadrill Reports Earnings

Seadrill Ltd (NYSE:SDRL) is nearly 5% in the green so far today after the offshore driller reported earnings of $0.52 per share for the second quarter, beating estimates by $0.10 per share. However, due to lower oil prices caused by lower demand, revenue for the time period fell by 20.4% year-over-year to $868 million and missed estimates by $16.15 million. Seadrill Limited’s order backlog was $3.6 billion, while Seadrill Group’s backlog was $8 billion. Net interest bearing debt amounted to $9.114 billion, while EBITDA came in at $557 million. Seadrill bulls need Brent prices to go to $60 per barrel or higher for the company to do well fundamentally. At the end of June, 17 funds from our database had a bullish position in Seadrill Ltd (NYSE:SDRL), compared to 22 funds that held shares a quarter earlier.

Tiffany Posts Mixed Results

Tiffany & Co. (NYSE:TIF)’s shares have surged by more than 6% on the back of the diamond retailer reporting mixed results for the fiscal second quarter ended July 31. Although its earnings of $0.84 per share, beat estimates by $0.12, the company’s revenue of $932 million missed the mark by $2.74 million. Comparable store sales fell 8% year-over-year, due in part to the strong dollar. For the full year, management sees EPS declining by a mid-single-digit percent. Of the around 750 elite funds we track, 26 funds owned $534.32 million worth of Tiffany & Co. (NYSE:TIF)’s stock, which accounted for 7.00% of the float on June 30, versus 26 funds and $372.19 million, respectively, on March 31.

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