Why Are These Four Stocks Trending Right Now?

Shares of Fitbit Inc. (NYSE:FIT) are trending after the fitness technology company reported third quarter earnings of $0.24 per share on revenues of $409.3 million, up by 168% year-over-year. The results beat analyst estimates by $0.14 per share in earnings and $58.3 million in revenues. Guidance was also optimistic, with management expecting fourth quarter EPS of $0.20-to-$0.25 and revenues of $620 million-to-$650 million, versus expectations of $0.20 per share and $580.7 million in revenues. Gross margin for the quarter declined by 5.6 percentage points year-over-year to 48.3%, but rose by 1.3 percentage points sequentially. Shares of Fitbit are down by 5.22% in morning trading despite the solid quarter because the company announced it is planning a 21 million stock offering. Shares of Fitbit will likely remain very volatile ahead of the company’s December 15 lockup expiration.

Hedge funds we track seem to be underweight Fitbit Inc. (NYSE:FIT). Of the 730 elite funds we track, 27 owned Fitbit shares worth $249.92 million, representing just 3.20% of the float at the end of June. This compares to the 33.9% of the float that is short. John Griffin‘s Blue Ridge Capital owns 3.5 million shares, while Chase Coleman’s Tiger Global Management LLC owns 500,000 shares. Daniel Benton’s Andor Capital Management owns 350,000 shares.

Pioneer Natural Resources (NYSE:PXD) is trending after the leading independent reported a third quarter loss of $0.01 per share on revenues of $883 million, beating estimates by $0.02 per share and $98 million, respectively. Production rose by 7% quarter-over-quarter to 211,000 barrels of oil equivalent per day, exceeding management’s previous guidance of 205,000-to-210,000 BOE/day. Because of the strong quarterly results, management is raising the company’s full year production growth target to 11% year-over-year from the previous 10% year-over-year target. Seth Klarman’s Baupost Group owned 4.07 million Pioneer shares at the end of June. Andreas Halvorsen‘s Viking Global and Zach Schreiber’s Point State Capital also own shares of the leading independent. Shares of Pioneer should do well once WTI begins heading north again.

Disclosure: None