Markets are trading in the green on Friday following easing Brexit fears and optimism over central bank’s intervention.
Investors are keenly watching some stocks today, including Micron Technology, Inc. (NASDAQ:MU), Vale SA (ADR) (NYSE:VALE), Transocean LTD (NYSE:RIG), Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) and Array Biopharma Inc (NASDAQ:ARRY). Let’s take a closer look at the companies in question and find out how the funds in our database are positioned towards them.
While there are many metrics that investors can assess in the investment process, 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 beat the S&P 500 by around 95 basis points per month (see more details here).
Micron Misses Revenue Estimates, Announces Layoffs
Micron Technology, Inc. (NASDAQ:MU)’s stock has plunged by over 10% so far today after posting disappointing results for the fiscal third quarter. Sales in the quarter fell by 24.8% on the year to $2.9 billion, missing the consensus estimate of $2.96 billion. However, non-GAAP adjusted loss of $0.08 per share was slightly better than the analysts’ estimates of $0.09. The Idaho-based company, which has been suffering from a weak demand for personal computers and facing a tough competition from rivals like Samsung, said it is going to cut jobs and peruse other cost reduction initiatives to save $300 million in fiscal 2017. Micron CEO Mark Durcan said in a statement that Micron continues to face challenges despite of “good progress” in the deployment of DRAM and NAND technologies. For the fourth quarter, Micron expects a loss of $0.24 – $0.16 per share. Among the funds tracked by us, 51 funds were bullish on Micron Technology, Inc. (NASDAQ:MU) at the end of March, down from 64 funds a quarter earlier.
Vale SA’s Surging after Iron Ore Rally
Investors are watching Vale SA (ADR) (NYSE:VALE) closely amid the company’s attractive prospects of growth following an increase in global iron ore demand due to Chinese government’s stimulus measures and a decline in Iron ore supplies from seaborne resources. The Brazil-based mining company recently surprised its investors by posting positive earnings in the latest quarter. Moreover, Vale remains insulated from the negative effects of Brexit due to its small dependence on the European markets. As of the end of the first quarter, 26 funds tracked by Insider Monkey are bullish on Vale SA, up from 18 funds a quarter earlier.
On the next page, we will discuss Transocean, Himax Technologies and Array Biopharma.