Hedge Funds Seem to Have Anticipated Copa Holdings, S.A. (CPA)’s Weak Financial Results

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Among top losers today is Copa Holdings, S.A. (NYSE:CPA), which plunged 13%, following a dismal earnings report for the second quarter. The Latin American airline passenger and cargo service provider reported adjusted earnings of $41 million or $0.93 per share excluding special items, which was $0.13 per share lower than the Street’s expectation and 65% lower from the same period in 2014. Copa Holdings, S.A. (NYSE:CPA)’s revenue decreased year-over-year by 20.1% to $534.8 million and Operating income decreased by 62.5% to $49.2 million. Operating margins stood at 9.1% for the quarter as opposed to 19.5% during the same period in 2014. Year-to-date the stock has dropped by around 40%, including today’s decline. Hedge funds seem to have anticipated this development as the stock saw a decrease of popularity during the first quarter.

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At the end of the first quarter, a total of 19 of the hedge funds tracked by Insider Monkey were bullish on Copa Holdings, owning around $320.6 million worth of stock, a 8% reduction from the value held by 23 hedge funds at the end of December. During the January – March period the stock had depreciated by around 2.5%, which indicates that even though hedge funds held around 7% of the company, there still was a capital outflow during the period.

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Keeping this in mind, let’s check out the latest actions surrounding Copa Holdings, S.A. (NYSE:CPA).

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