In this article, we will discuss some of the popular stocks gaining on Friday.
The US markets are in the red today following hawkish comments by the Federal Reserve Chair Jerome Powell highlighting a possible 50 basis points interest rate increase next month. The S&P 500, the Dow 30 Index, and the NASDAQ Composite Index are down 1.86%, 1.79%, and 1.70%, respectively, as of 12:12 PM ET. Meanwhile, the US 10-year benchmark yield is hovering at its highest level since December 2018 at 2.9%. Some notable stocks gaining today include Twitter, Inc. (NYSE:TWTR), JD.com, Inc. (NYSE:JD), and Electronic Arts Inc. (NASDAQ:EA).
Let’s look at why these stocks are gaining today and discuss how hedge funds are positioned in them.
Pixabay/Public Domain
10. American Airlines Group Inc. (NASDAQ:AAL) has climbed 4.25% as of 9:46 AM ET after the Fort Worth, Texas-based airline was upgraded from a Neutral to a Buy rating by John Staszak at Argus. The analyst gave American Airlines Group Inc. (NASDAQ:AAL) stock a price target of $24, reflecting a potential upside of 18.69% from the last closing price. Staszak highlighted that the biggest airline in the world in terms of fleet size reported a smaller than anticipated loss for Q1 2022. He foresees the airline benefiting from the recovery in business activities globally. American Airlines Group Inc.’s (NASDAQ:AAL) management is also working on reducing the company’s operational costs.
Out of the 924 hedge funds being tracked by Insider Monkey, American Airlines Group Inc. (NASDAQ:AAL) was held by 30 hedge funds as of Q4 2021.
9. SVB Financial Group (NASDAQ:SIVB) has gained 10.31% as of 12:14 PM ET after JPMorgan analyst observed that the California-based high-tech commercial bank offers 74% upside potential from yesterday’s closing price of $503.13. The stock was also upgraded from a Neutral to a Buy rating at Janney Montgomery Scott. Silicon Valley Bank (SVB) posted its Q1 2022 results after the close of trading yesterday. EPS was reported at $7.92, surpassing the consensus estimate of $5.58. SVB Financial Group (NASDAQ:SIVB) stock has a 52-week low and high of $486.74 and $763.22, respectively.
As of Q4 2021, SVB Financial Group (NASDAQ:SIVB) was a part of 47 hedge fund portfolios. Fisher Asset Management is the leading investor in SVB Financial Group (NASDAQ:SIVB), with a stake worth over $404 million.
8. Kimberly-Clark Corporation (NYSE:KMB) is 9.24% in the green as of 12:15 PM ET after the Dallas, Texas-based personal care company reported better-than-expected Q1 2022 results before the opening bell today. Kimberly-Clark Corporation (NYSE:KMB) recorded revenue and EPS of $5.1 billion and $1.35, respectively, which surpassed the consensus estimate of $4.9 billion and $1.23. Furthermore, Kimberly-Clark Corporation (NYSE:KMB) also reported that it anticipates FY22 adjusted EPS to be in the range of $5.60 to $6. The midpoint of $5.80 is five cents higher than the analysts’ forecast of $5.75. Kimberly-Clark Corporation’s (NYSE:KMB) CEO Michael D. Hsu also commented that the company is taking action to combat macro headwinds.
As of Q4 2021, Kimberly-Clark Corporation (NYSE:KMB) was held by 32 hedge funds.
7. Digital World Acquisition Corp. (NASDAQ:DWAC) is up 8.43% as of 12:16 PM ET after the ex-US President Donald Trump’s SPAC revealed that Truth Social has shifted to Rumble’s cloud infrastructure. The special purpose acquisition company (SPAC) is taking Donald Trump’s social media company to the masses. The platform claims to be a “new and a cancel-culture-free” space. Digital World Acquisition Corp. (NASDAQ:DWAC) stock price was under pressure in the last two days as Kerrisdale posted a short report that indicated that Digital World Acquisition Corp. (NASDAQ:DWAC) would not be able to obtain the regulatory approval to complete the SPAC deal.
6. Allegion plc (NYSE:ALLE) has risen 3.53% as of 12:17 PM ET after the Dublin, Ireland-based provider of security products for homes and businesses reported that it would acquire Access Technologies, the automatic door business from Stanley Black & Decker, Inc. (NYSE:SWK), for $900 million in cash. The business had a top line of $340 million during 2021 with an adjusted EBITDA margin in the mid-teens. The deal is expected to be completed by Q3 2022. Allegion plc (NYSE:ALLE) is expected to report its Q1 2022 results on April 26. Allegion plc (NYSE:ALLE) anticipates revenue of $723 million, compared to the analysts’ estimates of $690.07 million. Meanwhile, the EPS is expected to be reported at $1.05, nine cents higher than the consensus estimate of 96 cents.
According to Insider Monkey’s proprietary data, Allegion plc (NYSE:ALLE) was held by 34 hedge funds as of Q4 2021. ARK Investment Management was the leading investor in the company during Q1 2022.
Along with Allegion plc (NYSE:ALLE), some other notable top gainers today include Twitter, Inc. (NYSE:TWTR), JD.com, Inc. (NYSE:JD), and Electronic Arts Inc. (NASDAQ:EA).
5. Twitter, Inc. (NYSE:TWTR) has soared 1.89% as of 12:18 PM ET after Dan Ives at Wedbush noted that a “high stakes” poker game is taking place between Elon Musk and Twitter, Inc. (NYSE:TWTR). The analyst anticipates Musk to place a tender offer to the shareholders of Twitter, Inc. (NYSE:TWTR). If that tender offer is accepted by 35% to 40% of the shareholders, the Board of Directors will come under pressure to take action. Twitter, Inc. (NYSE:TWTR) has already implemented a poison pill, which would dilute Tesla’s CEO’s stake if he attempts to buy more than 15% of the company. Presently, Musk owns a 9.2% stake in Twitter, Inc. (NYSE:TWTR).
As of Q4 2021, Twitter, Inc. (NYSE:TWTR) was held by 83 hedge funds.
4. Schlumberger Limited (NYSE:SLB) has seen the value of its stock increase by 4.72% as of 12:18 PM ET after the Houston, Texas-based oilfield equipment and services company reported strong revenue and EPS results for Q1 2022. Schlumberger Limited (NYSE:SLB) also raised its dividend by 40% to 17.5 cents due to strong commodity prices and energy demand globally. Revenue increased by 14.2% YoY to $5.96 billion and surpassed analysts’ estimate of $5.9 billion. Meanwhile, the non-GAAP EPS of 34 cents was one cent higher than the analysts’ forecast. Analysts at Tudor, Pickering, Holt & Co. have termed the dividend hike as ‘a very welcome surprise.’ Despite the conflict between Ukraine and Russia causing operational challenges, Schlumberger Limited (NYSE:SLB) did not report a write-down from its operations in Russia.
Of the 924 hedge funds in Insider Monkey’s database, Schlumberger Limited (NYSE:SLB) was held by 47 hedge funds as of Q4 2021.
3. Establishment Labs Holdings Inc. (NASDAQ:ESTA) has risen 9.13% as of 12:19 PM ET after the target price of the Costa Rica-based medical device and aesthetics company was increased by 31.57% to $125 by Joshua Jennings at Cowen. Jennings maintained an Outperform rating on Establishment Labs Holdings Inc. (NASDAQ:ESTA) stock. The analyst believes that the global breast implant industry will be revolutionized by the two-year results of the Motiva IDE, revealed at The Aesthetic Meeting in San Diego. The industry-leading safety profile of Motiva was recognized during the meeting, and low risk is being seen in the FDA approval process.
Overall, Establishment Labs Holdings Inc. (NASDAQ:ESTA) was held by 13 hedge funds at the end of Q4 2021.
2. JD.com, Inc. (NASDAQ:JD) is up 4.62% as of 12:19 PM ET after the Chinese e-commerce company announced that it is considering giving out a special dividend on or around May 4. This development has surprised the shareholders and has been positively welcomed by Alicia Yap at Citi. The analyst has given a price target of $97 with a Buy rating on JD.com, Inc. (NASDAQ:JD) stock, highlighting that the special dividend is both ‘surprising and positive.’ Furthermore, it also reflects that JD.com, Inc. (NASDAQ:JD) has the potential to generate cash flows.
The company also increased its share repurchase plan from $2 billion to $3 billion. It could execute another share buyback plan of $2.2 billion. However, the analyst thinks that giving value to the shareholders through share repurchase is more challenging compared to a special dividend, especially during a challenging macro environment.
Out of the 924 hedge funds being tracked by Insider Monkey, JD.com, Inc. (NASDAQ:JD) was held by 67 hedge funds as of Q4 2021.
1. Electronic Arts Inc. (NASDAQ:EA) has risen 1.69% as of 12:20 PM ET after the coverage of the California-based video company was initiated by Matti Littunen at Bernstein with an Outperform rating. The analyst gave a price target of $157, reflecting a potential upside of 26.87% from the last closing price. Littunen sees the $180 billion video game industry as the “best structural growth opportunity” in the media sector. The analyst thinks that Electronic Arts Inc. (NASDAQ:EA) is oversold given its ‘quality and growth potential.’ He further stated that Electronic Arts Inc. (NASDAQ:EA) has learned from prior mistakes and has formed a mature business strategy.
Overall, Electronic Arts Inc. (NASDAQ:EA) was held by 41 hedge funds as of Q4 2021.
You can also take a peek at the 10 Best Semiconductor Stocks to Buy for 2022 and 10 Electric Car Stocks to Buy for 2022.
Follow Insider Monkey on Twitter
Suggested Articles:
- 10 Consumer Technology Stocks to Invest In According to Ken Fisher’s Fisher Asset Management
- 12 Best US Stocks to Buy Now
- 10 Cryptocurrencies Millionaires Love
Disclose. None. Top 10 Gainers Today is originally published on Insider Monkey.
