Stocks are wavering on Thursday following a rise in weekly jobless claims, a widening trade deficit, and mixed earnings reports. However, some stocks are having big days on positive earnings results and other news, including Evoke Pharma Inc (NASDAQ:EVOK), GrubHub Inc (NYSE:GRUB), ARRIS International plc (NASDAQ:ARRS), Ocwen Financial Corp (NYSE:OCN), and Logitech International SA (USA) (NASDAQ:LOGI). Let’s find out why these stocks are gaining value today and also see what the hedge funds tracked by us think of these companies.
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FDA Conditionally Accepts Evoke Pharma’s Gimoti Brand Name
Evoke Pharma Inc (NASDAQ:EVOK) has skyrocketed by more than 26% so far today following the FDA’s conditional acceptance of the proposed brand name ‘Gimoti’ for the company’s metoclopramide nasal spray EVK-001. According to a statement released by the California-based specialty pharmaceutical company, a request for proprietary name review for Gimoti will be included when the company submits a New Drug Application (NDA) for the product candidate, which the company believes there is value in pursuing. Evoke’s CEO Dave Gonyer said that the company is analyzing data from its recently completed Phase 3 trial EVK-001 and considering all submission strategies. Just three funds in our database were bullish on Evoke Pharma Inc (NASDAQ:EVOK) at the end of the first quarter.
GrubHub Beats Estimates
GrubHub Inc (NYSE:GRUB)’s stock is going through the roof today, gaining 22.06% so far after the company beat analysts’ forecasts with its second quarter earnings. The New York-headquartered online- and mobile-based food ordering company earned $0.23 per share, better than the consensus estimate of $0.19. Revenue of $120.20 million also surpassed the consensus estimate of $114.13 million. Active diners rose by 24% year-over-year to 7.35 million during the quarter. For the full year, GrubHub expects revenue of $480 million-to-$488 million, higher than the estimates of $473.3 million. 23 hedge funds out of the 766 active funds tracked by Insider Monkey were long GrubHub Inc (NYSE:GRUB) at the end of March.
On the next page we’ll discuss why ARRIS, Ocwen Financial, and Logitech are making big upward moves today.
ARRIS International Posts Strong Second Quarter
Shares of ARRIS International plc (NASDAQ:ARRS) are popping today, gaining more than 12% so far after the company powered past second quarter earnings estimates. The Suwanee, Georgia-based company posted EPS of $0.84, toppling the estimates of $0.65. Revenue of $1.73 billion was also above the forecasts of $1.70 billion. For the third quarter, the entertainment and communications technology company expects EPS of $0.72-to-$0.77, slightly ahead of the $0.73 consensus at the mid-point. Following the earnings report, investment firm Needham & Company reiterated a ‘Buy’ rating for ARRIS Group and upped its price target on it to $32 from $30. 26 funds in our system were long ARRIS International plc (NASDAQ:ARRS) at the end of the first quarter.
Ocwen Financial Beats Revenue Estimates
Ocwen Financial Corp (NYSE:OCN)’s stock has surged by 11.63% today following the release of its second quarter financial results. The Atlanta, Georgia-based residential and commercial mortgage company reported a loss of $0.71, $0.23 worse than the consensus estimate of a loss of $0.48. However, revenue for the quarter totaled $373 million, sharply above analysts’ forecast of $324.05 million. Ocwen experienced a 35% increase in origination volume during the quarter, and a 19% jump in loan modifications to assist homeowners facing foreclosure. In a statement, Ocwen’s CEO Ron Faris said that the company continues to put legacy issues such as the Fisher cases behind it, and that it is making an effort to return to profitability in its core operations. Andy Redleaf’s Whitebox Advisors was one of 19 hedge funds tracked by us that were bullish on Ocwen Financial Corp (NYSE:OCN) at the end of the first quarter.
Logitech Beats First Quarter Estimates
Logitech International SA (USA) (NASDAQ:LOGI)’s stock has gained more than 12% in value today after the company posted better than expected first quarter of fiscal year 2017 results. The Swiss computer company earned $0.20 per share, topping the $0.13 per share consensus target. Sales for the quarter rose by 7% to $480 million, whereas retail sales grew by 13%. Logitech upped its fiscal year 2017 retail sales outlook to an 8%-to-10% year-over-year gain on a constant currency basis. 12 hedge funds that we track were long Logitech International SA (USA) (NASDAQ:LOGI) at the end of first quarter, double the total of six funds from a quarter earlier.