How Do Hedge Funds View These Stocks That Just Reported Earnings?

Actuant Corporation (NYSE:ATU) reported fiscal 2015 fourth quarter EPS of $0.37 on revenues of $300.38 million versus expectations of $0.29 in EPS on revenues of $294.21 million. Earnings beat expectations as management maintained a tight control on costs. Revenues fell less than expectations as core sales declined by just 7% year-over-year when excluding the impact of divestments and foreign exchange. Overall, Actuant reported a yearly adjusted EPS of $1.65 on revenues of $1.25 billion for fiscal year 2015. Guidance is solid. Management expects fiscal 2016 EPS to be $1.20-$1.40 on revenues of $1.16-$1.20 billion, giving Actuant a reasonable forward PE of 14.9 when using the midpoint of the EPS guidance range.

Hedge funds are bullish on Actuant Corporation (NYSE:ATU). 20 hedge funds owned $166 million of the company’s shares (representing 12.00% of the float) on June 30, versus 12 funds and $185.59 million respectively on March 31. Richard S. Pzena‘s Pzena Investment Management increased its position by 18% to 2.38 million shares while Ken Griffin’s Citadel Investment Group upped its stake by 89% to 875,338 shares. Joel Greenblatt’s Gotham Asset Management increased its position by 85% to 506,641 shares while Lee Munder’s Lee Munder Capital Group upped its holdings by 32% to 492,880 shares. Glenn Russell Dubin’s Highbridge Capital Management established a new position of 343,991 shares.

Analysts are bullish but reserved on Actuant. Although the analysts covering the industrial company have a consensus price target of $28.60, their price targets have trended lower in recent months. Robert W. Baird lowered its price target to $25 from $26 on June 19, while Barclays initiated coverage with an $18 price target on September 24.

Disclosure: None