Although the major indexes are mostly flat for the day, shares of Chemours Co (NYSE:CC), Fiat Chrysler Automobiles NV (NYSE:FCAU), KLX Inc (NASDAQ:KLXI), Transocean LTD (NYSE:RIG), and Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) are deep in the red for various reasons. Let’s find out why traders are selling these stocks and take a look at the hedge fund sentiment towards them.
At Insider Monkey, we track around 760 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on, can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see the details here).
Technical Selling Detected At Chemours Co
Chemours Co (NYSE:CC) is 3% lower today as the stock consolidates its more than 200% surge since late January. The around $10 price level seems to be a short-term resistance point that the stock needs to pass before the rally can continue higher. After the surge Chemours is also no longer dirt-cheap with a forward P/E of 8.46. Of the around 766 elite funds we track, 30 funds amassed $307.12 million worth of Chemours Co (NYSE:CC) shares, which accounted for 24.20% of the float on March 31, versus 22 funds and $190.84 million, respectively, on December 31.
Fiat Chrysler Falls On Emission Report
Fiat Chrysler Automobiles NV (NYSE:FCAU) shares have retreated more than 4% after Germany’s Federal Motor Transport Authority determined that Fiat Chrysler had used illegal software to make emissions better than they actually were. Fiat Chrysler has in turn said that all of its vehicles meet European regulations. It is unclear what the fallout will be because Italy, not Germany, is responsible for testing Fiat cars under EU law. So far, the Italian government hasn’t taken any action, although this weekend’s news story might prompt them to take another look. Fiat Chrysler Automobiles NV (NYSE:FCAU) was in 28 funds’ portfolios at the end of March.
On the next page, we examine KLX, Transocean LTD, and Petroleo Brasileiro.