Two Trending Stocks Moving in Different Directions; Which One Hedge Funds Like More?

The stock of AK Steel Holding Corp (NYSE:AKS), a company that engages in producing flat-rolled carbon, stainless and electrical steels, and tubular products through its subsidiary, was affected by the company’s guidance for the third quarter of fiscal 2015 released earlier today. The company said it expects to deliver a loss in the range between $0.02 and $0.07 per diluted share. The news stirred investors because the projected results are slightly worse than the loss of $0.05 per share that the company posted for the third quarter of the previous fiscal year, but are much higher than the loss of $0.36 per diluted share in the second quarter. The preliminary third quarter loss also beats the forecast of $0.23 per share. AK Steel Holding Corp (NYSE:AKS) expects positive financial effects of higher shipments, lower raw material costs, and cost reduction efforts during the third quarter.

From the list of hedge funds that we track, the number of funds bullish on AK Steel Holding Corp (NYSE:AKS) remained flat during the second quarter at 34, but the total value of their positions went up to $141.46 million, representing 20.60% of the company, from $140.90 million at the end of March. Among the investors that hold stakes in the company, Kenneth Tropin‘s Graham Capital Management had the biggest position at the end of June with 14.5 million shares worth $14.71 million, followed by Israel Englander’s Millennium Management, with 7.53 million shares worth $29.15 million. The third largest shareholder of AK Steel Holding Corp (NYSE:AKS) is Dmitry Balyasny’s Balyasny Asset Management, which has a $22.69 million stake in the company, which contains 5.86 million shares.

Disclosure: none