Seadrill Ltd (NYSE:SDRL) shares are off by 4% on the day because Brent and WTI prices are down by 1%. Crude prices have been volatile recently, with industry supply continuing to be a problem and with Saudi Arabia recently stating that it will work toward oil price stability. Traders are divided on Saudi Arabia’s nebulous comment, with the bulls initially buying contracts earlier in the week on the hopes that Saudi Arabia will cut production and now the bears selling contracts on the hopes that Saudi Arabia will keep production the same. Given that increased Saudi Arabian production is the main reason for the oversupply, any Saudi production decision will change crude prices substantially. If Saudi Arabia cuts production meaningfully, Seadrill shares will rally on improved sentiment.
According to our data from around 730 elite funds, top investors were growing more optimistic about Seadrill Ltd (NYSE:SDRL) in the third quarter. A total of 23 funds reported holding stakes worth $108.92 million as of the end of September, up from 18 funds owning $95.49 million in shares at the end of June. Among the funds that increased their positions in Seadrill was Renaissance Technologies, which added over 200,000 shares to its holding.
Last but not least, HP Inc (NYSE:HPQ) shares have fallen by 13% after the company reported disappointing earnings results. For its fourth quarter of fiscal year 2015, HP Inc (NYSE:HPQ) reported EPS of $0.93 on revenue of $25.71 billion, missing estimates by $0.03 per share and $650 million. PC revenue declined by 14% year-over-year to $7.7 billion while printing revenue also retreated by 14%, to $5 billion. On top of that, guidance was a little lackluster, with management expecting fiscal year 2016 EPS of $1.59-to-$1.69 versus analyst estimates of $1.77 per share. Bulls hope management can turn the situation around with more than just job cuts and stock buybacks, but the PC’s secular decline has been painful for HP and shows no sign of improving.