The Dow Jones is slightly in the red today as market sentiment dips on a more mixed batch of earnings results being released today. Origin Agritech Ltd. (NASDAQ:SEED), Corning Incorporated (NYSE:GLW), Exelixis, Inc. (NASDAQ:EXEL), Tenneco Inc (NYSE:TEN), and Cynosure, Inc. (NASDAQ:CYNO) are five stocks that are on the move amidst this backdrop, some on earnings, some on other catalysts. Let’s find out why traders are buying and selling these equities today and see what the collection of hedge funds in our database thinks of each stock.
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Origin Agritech Names New Boss
Origin Agritech Ltd. (NASDAQ:SEED) initially surged upon the ringing of the opening bell before fading into the red, with shares now trading down by 1.76%. Origin The volatile trading activity comes after Agritech’s board of directors named Dr. William S. Niebur as the company’s new President and CEO, according a press release. Dr. Niebur will replace Dr. Gengchen Han as the company’s head, with Dr. Han commenting on the hiring in the press release, saying:
“This announcement is the next step in our strategic plan to grow our worldwide presence in the biotechnology and seed industries. Dr. Niebur’s extensive experience, strategic vision, industry relationships and reputation – in Asia, North and South America and Europe – will help to further accelerate Origin’s emergence on the global stage.”
Dr. Niebur was recently a VP and General Manager of DuPont Pioneer. No funds that Insider Monkey tracks owned Origin Agritech Ltd. (NASDAQ:SEED) at the end of 2015.
Corning Lower on Soft Top Line
Corning Incorporated (NYSE:GLW) is 7% in the red after reporting first quarter earnings of $0.28 per share on sales of $2.17 billion. The results met EPS estimates but missed the top-line consensus by $60 million. Sales dropped by 10.7% year-over-year due to glass prices declining to a five-year low. Sales at the company’s display technologies unit fell by 17.2% year-over-year to $829 million, while Corning’s specialty materials segment saw its revenue fall by 16.5%. In better news, management expects the results for the rest of the year to be better than they were in the first quarter, with core earnings expected to be $50 million-to-$70 million for the second quarter, depending on the closing date of the company’s realignment of Dow Corning. Corning Incorporated (NYSE:GLW) was in the portfolio of 38 funds in our system at the end of the fourth quarter, out of the 786 active funds that Insider Monkey tracks.
On the next page we examine why Exelixis Inc, Tenneco Inc, and Cynosure Inc. are trading on high volume today.
Exelixis Higher as FDA Approves Cabozantinib
Exelixis, Inc. (NASDAQ:EXEL) is 3% higher on the news that the FDA has approved the company’s cabozantinib (Brand Name: CABOMETYX) for the treatment of advanced renal cell carcinoma for patients who have received prior anti-angiogenic therapies. Renal cell carcinoma is the most common form of kidney cancer in adults. CEO Michael Morrissey discussed the approval in a press release announcing the news:
“With today’s announcement, patients with previously treated advanced kidney cancer now have a new option, the first and only approved product demonstrated to help patients live longer while also delaying the progression of their cancer. We are proud to bring new hope to this community, who are looking for more therapies that can help extend lives. Exelixis is committed to making CABOMETYX available to patients in need within the next couple weeks.”
The number of elite funds with holdings in Exelixis, Inc. (NASDAQ:EXEL) rose by five quarter-over-quarter to 17 as of the end of December.
Tenneco Turns in Excellent Quarter
Tenneco Inc (NYSE:TEN) reported first quarter EPS of $1.17 on sales of $2.14 billion today, beating estimates by $0.06 per share and $60 million, respectively. Sales rose by 5.9% year-over-year, led by the company’s Clean Air division, which saw its revenue jump by 7.8% year-over-year to $1.515 billion. Adjusted EBIT rose by 30 basis points to 6.5%. Management is expecting revenue to rise by 6% in the second quarter when excluding any currency impact. Shares of Tenneco Inc (NYSE:TEN) are 10% higher this afternoon on the news. The number of funds in our database that held shares of Tenneco rose by three during the fourth quarter to 31.
Cynosure Reports Better-Than-Expected Quarterly Results
Cynosure, Inc. (NASDAQ:CYNO) is 4% higher after the company reported better-than-expected first quarter results. For the first three months of the year, Cynosure earned $0.19 in EPS on sales of $94.66 million, beating the consensus by $0.05 per share and $8.88 million, respectively. Sales jumped by 26.4% year-over-year while the company’s operating income rose by 114.3% to $4.5 million. Chief Executive Officer Michael Davin reflected on the company’s performance in a press release announcing the results:
“Sustained momentum in North America, in part reflecting the full U.S. launch of SculpSure, helped generate solid first-quarter results for Cynosure, as our domestic business posted year-over-year top-line growth for the 22nd consecutive quarter. Higher revenue and favorable product mix drove increased margins and profitability, even as we accelerated our sales and marketing investments during the quarter to coincide with the rollout of SculpSure across all of our U.S. direct sales territories. We are extremely pleased with the progress of the launch and the response SculpSure is receiving from physicians and patients.”
15 top funds that Insider Monkey tracks in its database owned slightly over 10% of Cynosure, Inc. (NASDAQ:CYNO)’s shares at the end of 2015.