Markets opened higher on Thursday amid investors expecting the UK to remain in the EU following today’s referendum.
Some stocks are in the spotlight this morning, including General Electric Company (NYSE:GE), Caesars Entertainment Corp (NASDAQ:CZR), Twilio Inc (NYSE:TWLO), The Coca-Cola Co (NYSE:KO) and PepsiCo, Inc. (NYSE:PEP). Let’s find out what’s moving these stocks and see hedge funds sentiment towards them.
The smart money sentiment is an important metric that can be used to assess the long-term profitability of a stock. While there are thousands of stocks trading daily on the market, taking a look at what hedge funds think about certain companies can narrow down the search significantly. At Insider Monkey, we track more than 760 hedge funds, whose 13F filings we analyze as part of our small-cap strategy. Our research has shown that imitating a portfolio that includes the 15 most popular small-cap stocks among hedge funds can outperform the market by as much as 95 basis points per month on average (see more details here).
General Electric Company To Sell Credit Business
General Electric Company (NYSE:GE) is in the headlines on Thursday after the company announced that it had reached an agreement to sell French consumer credit business GE Money Bank to Cerberus Capital Management, a private equity firm. The sale ends net investment of approximately $4.6 billion as of the end of the first quarter, but the deal excludes $2 billion mortgage-loan portfolio, which will be sold separately. The latest sale is a part of General Electric’s plan to rigorously slash its financial services activities to focus on its industrial businesses. General Electric’s stock is up more than 1% in premarket trading today. Out of nearly 766 funds tracked by Insider Monkey, 64 funds were bullish on General Electric Company (NYSE:GE) at the end of March. Nelson Peltz’s Trian Partners owns around 74.24 million shares of the company.
Creditors Finally Get a Voice in Caesars Entertainment Bankruptcy
Caesars Entertainment Corp (NASDAQ:CZR) is on investors’ radars today after U.S. Bankruptcy Judge A. Benjamin Goldgar allowed the company’s creditors to start casting their votes on a Chapter 11 bankruptcy plan that details how they would be repaid. The creditors had accused the Las Vegas-based casino company of looting its operating unit of choice hotel and casino assets before filing for bankruptcy in January last year. Creditors should cast their votes by October 31. John Paulson’s Paulson & Co is one of the 19 funds from our database that reported stakes in Caesars Entertainment Corp (NASDAQ:CZR) as of the end of the first quarter.
On the next page, we will discuss shares’ movements of Twilio, The Coca-Cola Co. and Pepsi Co..