Crude futures have slid below $41 per barrel as sentiment around the commodity remains negative. Meanwhile, the US stock market is mixed amid the ongoing earnings season and after the US Commerce Department said the US economy grew by 1.2% in the second quarter, below expectations.
In this article, we take a look at why traders are talking about Digital Realty Trust, Inc. (NYSE:DLR), Spirit Airlines Incorporated (NASDAQ:SAVE), Anheuser Busch Inbev SA (ADR) (NYSE:BUD), TerraForm Power Inc (NASDAQ:TERP), and Alon USA Energy, Inc. (NYSE:ALJ) this morning. We will also examine data from 13F filings to see what the smart money thinks about each stock.
Hedge fund sentiment is an important metric for assessing the long-term profitability. At Insider Monkey, we track over 770 hedge funds, whose quarterly 13F filings we analyze and determine their collective sentiment towards several thousand stocks. However, our research has shown that the best strategy is to follow hedge funds into their small-cap picks. This approach can allow monthly returns of nearly 95 basis points above the market, as we determined through extensive backtests covering the period between 1999 and 2012 (see the details here).
Digital Realty FFO Ahead of Estimates
Digital Realty Trust, Inc. (NYSE:DLR) reported FFO of $1.42 per share on revenue of $514.94 million for its second quarter, beating the consensus by $0.04 per share and $6.32 million, respectively. Core FFO grew by 9.2% year-over-year, while adjusted EBITDA jumped by 20% to $296.9 million. In addition, Digital Realty’s management raised full-year core FFO guidance to $5.65 to $5.75 per share, from the previous $5.55-to-$5.65 range. Among the investors we track, Jim Simons’ Renaissance Technologies bumped up its stake in Digital Realty Trust, Inc. (NYSE:DLR) by 21% to 932,000 shares during the January-March period.
Spirit Reports Results
Spirit Airlines Incorporated (NASDAQ:SAVE) delivered mixed results for the second quarter, beating profit estimates by $0.03 per share, with a figure of $1.11, but sales of $583.13 million missed revenue expectations by $2.95 million. Total revenue per passenger flight segment dropped by 15% year-over-year to $104.19, while adjusted cost per available seat mile (CASM) fell by 15.1% year-over-year to $0.0707. Adjusted CASM ex-fuel declined by 8.6% to $0.053. Load factor was 86.4%, up from 86% in the second quarter of 2015. A total of 28 funds from our database owned shares of Spirit Airlines Incorporated (NASDAQ:SAVE) at the end of March, down by seven funds from the previous quarter.
On the next page, we find out why Anheuser Busch Inbev, TerraForm Power, and Alon USA Energy are trending.