Stocks Going Viral Today: Staples, Nektar Therapeutics, Sealed Air Corp, More

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Stocks indexes have jumped higher today amid better-than-expected earnings from Netflix, Inc. (NASDAQ:NFLX) and Goldman Sachs Group Inc (NYSE:GS), and a rally in oil prices. September’s consumer-price data also provided the markets with a jolt this morning, showing a 0.3% gain in September, fueled by gas and rent.

Meanwhile, some stocks including Danone SA (ADR) (OTCMKTS:DANOY), Resources Connection, Inc. (NASDAQ:RECN), Staples, Inc. (NASDAQ:SPLS), Nektar Therapeutics (NASDAQ:NKTR) and Sealed Air Corp (NYSE:SEE) are making moves of their own today. We’ll take a look at the factors behind this movement in this article and also analyze hedge fund sentiment towards each of these companies.

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Danone Misses Estimates

Shares of the world’s largest yogurt maker Danone SA (ADR) (OTCMKTS:DANOY) are losing a small amount of value this morning after the company missed third quarter revenue estimates amid regulatory changes in China, which hit sales of the company’s baby food. Sales tumbled by 1.8% to €5.54 billion ($6.10 billion) during the quarter, while comparable sales were up by 2.1%, missing analysts’ forecast of 2.2% growth. Baby food sales increased by 1.7%, significantly down from the second quarter’s 7.2% growth. In a statement, the CEO of the Paris-based food company, Emmanuel Faber, said Danone is currently facing a “volatile” environment, and that it is focusing on strengthening its model and margins instead of rushing for short-term sales growth. For the full 2016 year, Danone expects comparable sales growth of 3%-to-5%, and a rise of 50-to-60 basis points in operating margins. Ken Fisher’s Fisher Asset Management owns a stake in Danone SA (ADR) (OTCMKTS:DANOY) of 252,010 shares as of the end of the third quarter.

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Resources Connection Enters Into Credit Agreement

Resources Connection, Inc. (NASDAQ:RECN) is in the spotlight today, being up by over 12.5% after an SEC filing disclosed that the company and its domestic subsidiaries entered into a credit agreement of $120 million secured revolving loan with Bank of America. The credit involves a $90 million revolving facility, which includes a $5 million sublimit for the issuance of standby letters of credit, and a $30 million reducing revolving facility, any amounts of which may not be re-borrowed after being repaid. The proceeds of the Credit Facility will be used for the company’s working capital, clearing debts, potential acquisitions, and purchasing of the company’s common stock. The transaction is slated to be matured on October 17, 2021. At the end of the second quarter, 12 funds tracked by Insider Monkey were bullish on Resources Connection, Inc. (NASDAQ:RECN).

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Move to the next page to read about the rest of Tuesday’s hottest stocks.

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