In this article, we will discuss some of the popular stocks trending today.
It’s a mixed day at the stock market as the investors are trying to anticipate the next policy move by the Federal Reserve. The S&P 500 Index and the NASDAQ Composite Index are down 0.35% and 0.84%, respectively, as of 10:28 AM ET. Meanwhile, the Dow Jones Industrial Average (DJIA) Index is slightly up 0.08%. In a note issued to investors earlier today, Bank of America observed that the S&P 500 Index could fall below the 4,000 points level as the inflation shock worsens, resulting in a recession. Some popular stocks attracting investors’ attention today include Robinhood Markets, Inc. (NASDAQ:HOOD), HP Inc. (NYSE:HPQ), and Paysafe Limited (NYSE:PSFE).
Let’s look at why these stocks are trending today and discuss how elite funds are positioned in them.
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10. Tesla, Inc. (NASDAQ:TSLA) is down 2.7% as of 10:20 AM ET after the CEO Elon Musk announced last night that his company intends to launch its full self-driving (FSD) beta software for customers in North America by the end of 2022. Musk made this announcement at the opening of a new factory in Austin, which will now be the new headquarter of Tesla, Inc. (NASDAQ:TSLA).
The sixth Gigafactory has cost $1.1 billion. It will produce the famous Tesla Model Y and other notable models, such as the highly anticipated Cybertruck, the Roadster, and the Semi, beginning next year. This means that the Cybertruck, initially planned to be launched in 2021, will now be launched in 2023. Moreover, the new facility will manufacture 4,680 battery cells. The 50-year old billionaire also announced that Tesla, Inc. (NASDAQ:TSLA) will manufacture a ‘dedicated’ self-driving taxi that will ‘look futuristic.’ The analysts are expecting supply-chain constraints and chip shortages to hamper these plans.
Tesla, Inc. (NASDAQ:TSLA) was under the ownership of 91 hedge funds as of Q4 2021. These hedge funds have a cumulative stake of $12.9 billion in Tesla, Inc. (NASDAQ:TSLA).
9. WD-40 Company (NASDAQ:WDFC) has rocketed 12.5% as of 10:20 AM ET after the San Diego, California-based maintenance and cleaning product company reported its quarterly results for Q2 FY22 last evening. Revenue for the three months was posted at $129.99 million, surpassing the consensus estimate of $126.8 million. Meanwhile, the GAAP EPS for the period was $1.41, outperforming the analysts’ estimates of $1.01. WD-40 Company (NASDAQ:WDFC) reiterated its FY22 net sales growth outlook of 7% to 12%. This would translate into an annual net sales of around $522 to $547 million.
Of the 924 hedge funds in Insider Monkey’s database, WD-40 Company (NASDAQ:WDFC) was held by 12 funds as of Q4 2021.
8. CrowdStrike Holdings, Inc. (NASDAQ:CRWD) has risen 2.3% as of 10:20 AM ET after the cybersecurity company was granted a Provisional Authorization to Operate (P-ATO) at impact level 4 (IL-4) by the US Department of Defence (DoD). The authorization will allow CrowdStrike Holdings, Inc. (NASDAQ:CRWD) to implement its Falcon cybersecurity platform at numerous DoD and Defense Industrial Base (DIB) facilities to guarantee the protection of their Controlled Unclassified Information (CUI). After obtaining the IL-4, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is now working towards receiving IL-5 from the DoD, which will offer more growth opportunities to the company.
Overall, 74 hedge funds held a stake in CrowdStrike Holdings, Inc. (NASDAQ:CRWD) at the end of Q4 2021. Tiger Global Management LLC is long over 7 million shares of CrowdStrike Holdings, Inc. (NASDAQ:CRWD), making it the company’s biggest hedge fund investor.
7. Biogen Inc. (NASDAQ:BIIB) has fallen 0.3% as of 10:24 AM ET following the Medicare decision to limit the coverage of therapies that target Amyloid proteins in the brain. This action will adversely impact Biogen Inc.’s (NASDAQ:BIIB) approved therapy for Alzheimer’s in the form of Aduhelm. Following this development, Ami Fadia at Needham slashed the price target on Biogen Inc. (NASDAQ:BIIB) by nearly 10% to $262, implying a potential upside of 27% from yesterday’s closing price. The analyst thinks that this development will restrict the coverage of Aduhelm to thousands of patients only.
In Q4 2021, 63 hedge funds reported owning a stake in Biogen Inc. (NASDAQ:BIIB), down from 66 in the previous quarter.
6. Alcoa Inc. (NYSE:AA) has lost 2.7% of its value as of 10:25 AM ET after the Pittsburgh, Pennsylvania-based aluminum producer was downgraded from an Outperform to a Neutral rating by Curt Woodworth at Credit Suisse. Alcoa Inc. (NYSE:AA) stock was given a price target of $82, reflecting a potential downside of over 6.6%. The analyst thinks that the aluminum prices on the London Mercantile Exchange are hovering around their peak, and Alcoa Inc. (NYSE:AA) is facing inflationary pressure.
As of Q4 2021, Alcoa Inc. (NYSE:AA) was held by 41 hedge funds. Fisher Asset Management is the leading investor in the company, with a stake worth over $378 million.
Apart from Alcoa Inc. (NYSE:AA), Robinhood Markets, Inc. (NASDAQ:HOOD), and HP Inc. (NYSE:HPQ), Paysafe Limited (NYSE:PSFE) is also amongst the stocks trending today.
5. Robinhood Markets, Inc. (NASDAQ:HOOD) has plummeted 5.4% as of 10:23 AM ET after the Menlo Park, California-based financial services provider was downgraded to a Sell rating by William Nance at Goldman Sachs. The analyst believes that there is weakness in Robinhood Markets, Inc.’s (NASDAQ:HOOD) retail engagement levels. This is accompanied by slow account growth and a challenging path to profitability in the short term. Nance has given Robinhood Markets, Inc. (NASDAQ:HOOD) a price target of $13, reflecting a potential upside of 3.9% from the last closing price.
Of the 924 hedge funds being tracked by Insider Monkey, 24 funds held a stake in Robinhood Markets, Inc. (NASDAQ:HOOD) as of Q4 2021.
4. Peabody Energy Corporation (NYSE:BTU) is 2.3% in the green as of 10:43 AM ET after the news that the European Union has announced new restrictions that target coal imports from Russia as part of the fifth round of sanctions. This action was taken in retaliation to the conflict between Russia and Ukraine that started in late February. Germany is the biggest country in the EU, and its Chancellor Olaf Scholz has announced that it would take four months to completely transition from Russian coal.
As of Q4 2021, 28 hedge funds held a stake in Peabody Energy Corporation (NYSE:BTU). Elliott Management is the leading investor in Peabody Energy Corporation (NYSE:BTU), with a stake worth over $260 million.
3. HP Inc. (NYSE:HPQ) is down 0.4% as of 10:20 AM ET after the Palo Alto, California-based IT company was downgraded from a Buy to a Neutral rating by Jon Roy at UBS with a price target of $40. The price target implies a modest upside of 14.5% from yesterday’s closing price. The analyst has highlighted weakness in the low-end consumer PCs market as one of the factors for the downgrade. Furthermore, Roy added that the PC unit sales would decline from the fourth quarter of this year as supply chain disruptions and macroeconomic issues will come into play. The analyst also anticipates the share purchase to slow down following the completion of the $3.3 billion acquisition of Plantronics, Inc. (NYSE:POLY) by the end of this year.
Out of the 924 hedge funds being tracked by Insider Monkey, HP Inc. (NYSE:HPQ) was held by 39 funds as of Q4 2021.
2. Paysafe Limited (NYSE:PSFE) has gained 9.8% as of 10:22 AM ET after the UK-based online payments company announced that Bruce Lowthers would take over as the company’s new CEO and Executive Director succeeding Philip McHugh. Lowthers has an extensive experience of over 15 years in the US with FIS, a leading fintech company known to process around 75 billion transactions with a volume of $9 trillion annually. The last CEO, Philip McHugh, led Paysafe Limited (NYSE:PSFE) through the uncertainties of the COVID-19 pandemic and took the company public.
Overall, Paysafe Limited (NYSE:PSFE) was under the ownership of 32 hedge funds as of Q4 2021.
1. The Kroger Co. (NYSE:KR) is up 2.8% as of 10:25 AM ET after the Cincinnati, Ohio-based grocery retailer was upgraded from a Neutral to a Buy rating by Robert Ohmes at Bank of America. The analyst also revised the price target on The Kroger Co. (NYSE:KR) by nearly 23% to $75, as opposed to $61 previously. The target price reflects a potential upside of over 25% from the last closing price.
Ohmes anticipates a higher level of grocery inflation to continue until the first half of next year. This is based on rising prices of underlying commodities along with fertilizer prices. The analyst further expects the consumer to absorb this increase in prices as the US hourly wage rate has also increased by over 6%. Ohmes summed up his analysis by stating that more people are opting for retailers with greater variety as they are looking to shift their consumption to economical offerings.
The number of hedge funds holding a stake in The Kroger Co. (NYSE:KR) has increased to 41 as of Q4 2021, up from 39 in the preceding quarter.
You can also take a peek at the 10 Safe Stocks To Invest in For The Long-Term in 2022 and 10 Stocks to Buy According to Canyon Capital Advisors.
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Disclose. None. 10 Stocks to Watch on Friday is originally published on Insider Monkey.
