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Stocks Sinking On Earnings Reports: Ingersoll-Rand PLC (IR), CommVault Systems, Inc. (CVLT)

On the other hand Ingersoll-Rand PLC (NYSE:IR) reported total adjusted profit of $1.20 per share for the second quarter compared to the Zacks consensus estimate of $1.23 in EPS. The Dublin-based company reported net revenue of $3.6 billion, again marginally missing the Zacks consensus estimate of $3.68 billion. Ingersoll-Rand also provided EPS and revenue guidance for the current quarter, ending September 30 of $1.15 – $1.19 and $3.66 billion – $3.81 billion respectively. The stock had gained around 7.5% during the first quarter, before losing most of the gains today.

There were 41 hedge funds with a total investment of $1.98 billion in Ingersoll-Rand PLC (NYSE:IR) at the end of March. When compared to a $2.42 billion investment by 43 hedge funds at the end of 2014 and taking into account the stock’s jump by 7.4% during the first three months, we can say that hedge funds were somewhat bearish on the stock, as they pulled money out of it. Shares are now down by over 10% since the end of the first quarter, so we can see that in this case, hedge funds got it right.

Nelson Pletz‘s Trian Partners continued to hold the largest position in the stock during the first quarter, but even it sold around 34% of its holding during the first three months, leaving it with around 8.5 million shares valued at $583.4 million, comprising 6.81% of its total 13F portfolio at the end of March. Among the hedge funds who opted to say goodbye to this stock, leading the way was Andreas Halvorsen‘s Viking Global, as it offloaded all its 1.96 million shares of the company during the first trimester.

Considering the bearish hedge fund sentiment, coupled with its weak second quarter earnings, we don’t recommend buying the stock of Ingersoll-Rand at this time either.

Disclosure: None

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