The US stock market has inched up amid a decline in oil prices and higher bond yields. The market was also affected by several developments concerning individual stocks, some of which we are going to discuss in this article.
Having said that, among stocks that are in the red today are Biostar Pharmaceuticals Inc.(NASDAQ:BSPM), Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), Nokia Corp (ADR) (NYSE:NOK), ServiceNow Inc. (NYSE:NOW) and Palo Alto Networks Inc. (NYSE:PANW). In this article, we will take a look at the news that sent these stocks lower and will assess the hedge fund sentiment towards them.
We determine the hedge fund sentiment by analyzing the equity portfolios of some of the best-performing hedge funds and institutional investors. Through extensive research, we have determined that the due diligence that these investors employ, as well as their long-term focus makes them perfect targets to emulate. However, the results of our analysis have also showed that the small-cap picks of these funds can generate much better returns, with the 15 most popular small-cap stocks beating the market by an average of 95 basis points per month (see more details here).
Biostar Pharmaceuticals Inc.(NASDAQ:BSPM) stock has tumbled by 15% in the current trading session as the company announced the execution of agreement for direct offering of shares of common stock and warrants. The deal is expected to be worth $1.91 million and involve 425,000 shares, priced at $4.50 per share. It will also issues warrants for the purchase of 212,500 shares of common stock at $5.55 per share. At the end of June, Jim Simons’ Renaissance Technologies held around 106,000 shares of Biostar Pharmaceuticals.
Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) stock is 18% down today after the company issued a profit warning, saying that it expects its operating income to be 93% lower in the third quarter while the revenue is likely to show a 14% decline on a year-over-year basis. The company CEO said that the cost cutting measure could not offset lower gross margin and sales. The number of funds from our database long Telefonaktiebolaget LM Ericsson declined to 12 from 13 during the second quarter, while the total value of their holdings fell to $73.3 million from $140 million.
On the next page, we are going to discuss the other three stocks that have plunged in Wednesday intraday trading.