All Eyes On Wal-Mart, Valero, Kinder Morgan, 2 More This Morning

After opening in the green, all three indexes are modestly in the red in early morning trading as investors take some profits off the table from the last few trading sessions. Crude futures are also down this morning, taking some energy stocks down with it.

Among the stocks in the spotlight this morning are Wal-Mart Stores, Inc. (NYSE:WMT), American States Water Co (NYSE:AWR), Imprivata Inc (NYSE:IMPR), Valero Energy Corporation (NYSE:VLO), and Kinder Morgan Inc (NYSE:KMI). Let’s take a closer look at each company and see what the world’s greatest investors think of them.

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Although arch-nemesis Amazon.com, Inc. (NASDAQ:AMZN) may have held its much-touted Prime Day on July 12, Wal-Mart Stores, Inc. (NYSE:WMT)‘s sales were reportedly strong as well  Given the rivalry between the two, Wal-Mart offered shoppers a considerable amount of deals such as ‘rollbacks’ promotions and price cuts on select electronics, apparel, toys, and more, and those deals likely helped strengthen sales. As the average delivery time shortens, Amazon will likely compete more and more with Wal-Mart and it will be important for Wal-Mart to be able to match Amazon in terms of efficiency and pricing. Of the 766 active funds that Insider Monkey tracks, 54 owned $6.83 billion in Wal-Mart Stores, Inc. (NYSE:WMT) shares at the end of March, which accounted for 3.10% of the float.

American States Wins a Contract

American States Water Co (NYSE:AWR) shares are 1.2% higher after the U.S government awarded the company’s contracted services subsidiary, American States Utility Services, Inc, a 50-year contract to maintain, operate, and provide construction management services for wastewater and water systems at Eglin Air Force Base in Florida. American States Water estimates the value of the contract will be worth $510 million over the 50-year period. The contract is also subject to annual economic price adjustment. The number of funds in our system with holdings in American States Water Co (NYSE:AWR) rose by four quarter-over-quarter to nine as of the end of March.

On the next page, we examine why Imprivata Inc, Valero Energy, and Kinder Morgan and turning heads this morning.

Imprivata Sold to Private Equity Firm

Imprivata Inc (NYSE:IMPR) shares have surged by 31% after private equity firm Thoma Bravo agreed to buy the company for $19.25 in cash per share, for a total transaction value of $544 million. Shares of Imprivata had already performed very well in 2016 before the deal, rising by 28% year-to-date. The company did not release the estimated closing date of the transaction in the press release. Nine elite funds were long Imprivata Inc (NYSE:IMPR) at the end of the first quarter, including Justin John Ferayorni’s Tamarack Capital Management, which held 1.71 million shares.

Two midstream companies are trending today after Valero Energy Corporation (NYSE:VLO) agreed to buy Kinder Morgan Inc (NYSE:KMI)‘s 50% stake in Parkway Pipeline LLC for an undisclosed sum of cash. The Parkway Pipeline is a 141-mile pipeline with 110,000 barrels per day of capacity, with the ability to expand to over 200,000 barrels per day. Valero’s purchase gives it 100% interest in the pipeline and improves Kinder Morgan’s cash balance.

According to our database, 46 top funds had a bullish position in Valero Energy Corporation (NYSE:VLO) at the end of the first quarter. The smart money was a bigger fan of Kinder Morgan Inc (NYSE:KMI), with 58 top funds reporting bullish positions in the company as of the same time period.

Disclosure: None