The markets have slipped on Tuesday after the latest CPI report from the Bureau of Labor Statistics said that consumer prices in April were the highest they have been in three years. This could result in an interest rate increase by the Federal Reserve, which has a meeting scheduled for June. Some of the important stocks which are trending today include Home Depot Inc (NYSE:HD), LendingClub Corp (NYSE:LC), Alphabet Inc (NASDAQ:GOOGL), Pandora Media Inc (NYSE:P), and Twitter Inc (NYSE:TWTR). Let’s see why these stocks are in the spotlight today and also analyze the hedge fund sentiment surrounding each of them.
At Insider Monkey, we track nearly 800 hedge funds and other institutional investors as part of our small-cap strategy, which can help a retail investor beat Mr. Market by nearly one percentage point per month (see the details).
Home Depot Beats Estimates
Home Depot Inc (NYSE:HD)’s stock has lost 1.46% this morning despite the company beating estimates by posting profit of $1.80 billion, or $1.44 per share for the first quarter, up from $1.58 billion, or $1.21 per share for the first quarter of last year. The Atlanta-based home improvement retailer’s revenue increased by 9% to $22.76 billion, also beating analysts’ consensus estimate of $22.39 billion. In a statement, Home Depot CEO Craig Menear said that the strong financial figures were the result of solid execution and broad-based growth. The company also upgraded its 2016 full year guidance given the strong results, with it now expecting adjusted earnings at $6.27 per share on revenue growth of 6.3%, up from its previous guidance of $6.12-to-$6.18 per share on revenue growth of 5.1%-to-6.0%.
Out of the comprehensive database of funds that we track at Insider Monkey, 62 hedge funds were long Home Depot Inc (NYSE:HD) as of the end of last year. Phill Gross and Robert Atchinson’s Adage Capital Management owns more than 1.8 million shares of the company as of March 31.
LendingClub Receives Grand Jury Subpoena
LendingClub Corp (NYSE:LC) is down by 11.29% today after the company announced on Monday afternoon that it has received a grand jury subpoena from the U.S. Department of Justice. The summons from the court was issued after LendingClub’s CEO Renaud Laplanche resigned over an internal investigation regarding $22 million issued in improper loan sales. Nonetheless, the San Francisco-based company said today that it would not need to restate its financial results due to any weakness in its internal controls that led to the non-conforming sales.
Among the funds that we track, 18 held shares of LendingClub Corp (NYSE:LC) at the end of 2015. As of March 31, Alexander Tamas’ VY Capital reported holding 4.4 million shares of the company.
On the next page we’ll discuss why Alphabet, Pandora Media and Twitter are in the news today.