The Dow Jones Industrial Average remains close an hour before the closing bell, while the S&P 500 is heading towards ending the day in the red. A mixed sentiment was experienced among Weight Watchers International, Inc. (NYSE:WTW), Ubiquiti Networks Inc (NASDAQ:UBNT), TrueCar Inc (NASDAQ:TRUE) and Mad Catz Interactive, Inc. (USA) (NYSEMKT:MCZ) which played on opposing ends of the performance spectrum. Let’s see why these stocks are in the spotlight today. In addition, we will take a look at the hedge fund sentiment towards these stocks.
At Insider Monkey, we track hedge funds’ moves in order to identify actionable patterns and profit from them. Our research has shown that hedge funds’ large-cap stock picks historically underperformed the S&P 500 Total Return Index by an average of seven basis points per month between 1999 and 2012. On the other hand, the 15 most popular small-cap stocks among hedge funds outperformed the S&P 500 Index by an average of 53 basis points per month (read the details here). Since the official launch of our small-cap strategy in August 2012, it has performed just as predicted, returning over 102% and beating the market by more than 53 percentage points. We believe the data is clear: investors will be better off by focusing on small-cap stocks utilizing hedge fund expertise (while avoiding their high fees at the same time) rather than large-cap stocks.
Investors have flocked Weight Watchers International, Inc. (NYSE:WTW), whose stock has surged by more than 33% with more than 11 million shares traded. Weight Watchers International, Inc. (NYSE:WTW) has released its third-quarter 2015 financial report and raised its full-year earnings guidance to between $0.64 and $0.74 per share on an adjusted basis. It reported $21.8 million, or $0.38, in net income for the most recent quarter that ended October 3, which is 42.5% lower than the $37.9 million or $0.67 per share from the prior-year period. Its revenues also declined to $273.3 million in the third quarter, compared to $345.2 million from the same period last year. Meanwhile, adjusted operating income declined to $64.2 million in the third quarter of 2015 – reflecting a 30.3% slide from the $92.1 million in the third quarter of 2014.
Most recently, celebrity Oprah Winfrey joined the company’s board of directors and made a $43.2 million equity investment in the company. By the end of the second quarter of 2015, nine funds out of 730 from our database held shares of the company.