Although the broader indexes have risen largely on the back of solid consumer confidence data, shares of five companies, GoPro Inc (NASDAQ:GPRO), FactSet Research Systems Inc. (NYSE:FDS), Freeport-McMoRan Inc (NYSE:FCX), Southwestern Energy Company (NYSE:SWN), and Oasis Petroleum Inc. (NYSE:OAS), are each considerably lower for various reasons.
In this article, we examine why these stocks are trending lower and what the smart money investors from our database think about the companies in question.
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GoPro Inc (NASDAQ:GPRO) is off by over 5% this afternoon after the drone-maker DJI, introduced the Mavic Pro, which will cost $999. GoPro presented its drone product, Karma, last week to great fan fare. GoPro’s Karma will cost $799 for consumers. Given DJI’s commanding market share in the drone sector, it is uncertain whether GoPro can capture enough market share in the growing sector to restore the stock to its former heights any time soon. According to our database of 749 funds, 16 of them held $124.94 million worth of GoPro Inc (NASDAQ:GPRO)’s stock, which accounted for 8.40% of the action camera maker’s float on June 30.
FactSet Research Systems Inc. (NYSE:FDS) is around 6% in the red after the company reported disappointing fiscal fourth quarter results. For the period, FactSet earned $1.69 per share, missing the consensus by $0.01 per share. Revenue was $287.3 million, up by 9.7% year-over-year, but $3.13 million below the average analyst estimate. Fiscal first quarter guidance is a bit soft, with FactSet Research expecting EPS of $1.62 to $1.66 on sales of $286 million to $292 million, versus the analyst estimates of $1.72 and $293.9 million, respectively. Brian Bares‘ Bares Capital Management inched up its stake in FactSet Research Systems Inc. (NYSE:FDS) by 5% to 478,638 shares during the second quarter.
On the next page, we find out why Freeport-McMoRan, Southwestern Energy Company, and Oasis Petroleum are down this afternoon.
Oasis Petroleum Inc. (NYSE:OAS), Southwestern Energy Company (NYSE:SWN), and Freeport-McMoRan Inc (NYSE:FCX) are each considerably lower due to falling WTI prices, which are currently down by 2.66%.
Due to the regional rivalry between it and Saudi Arabia, Iran has refused to go along with a freeze, insisting that it would like to be allowed to produce 4.1 to 4.2 million barrels a day (from the current 3.6 to 3.8 million barrels per day) before agreeing to any freeze. Some traders think that some other nations, such as Libya and Nigeria, may also want some exemptions due to their currently depressed levels of production due to geopolitical troubles.
Once the lead proponent of increasing production to maintain market share, Saudi Arabia is now more on the freeze/cut side given that Saudi Aramco’s IPO would do better if crude prices were higher. The fat lady hasn’t sung just yet for a potential freeze, as OPEC will meet in November next. Both Oasis and Freeport-McMoRan would make less revenue if WTI prices fell. Southwestern Energy is also affected by the fall in crude prices because NGL prices are correlated with crude.
In terms of general hedge fund activity in the names, the smart money was pretty bullish on Southwestern Energy in the second quarter, as our data show the number of investors with holdings in the natural gas producer rose by 20 quarter-over-quarter to 48 at the end of June. Meanwhile, the number of funds long Oasis Petroleum Inc. (NYSE:OAS) went up by four to 33 during the second quarter. The smart money went the opposite way with Freeport-McMoRan, as 30 funds had a bullish position in the copper/oil producer at the end of the second quarter, down by four funds from the previous quarter.