Why GoDaddy, Agrium, and Other Stocks Are Trending on Wednesday

The three index futures are quiet on Wednesday as traders await the results of the FOMC meeting later today. Bullish crude traders are looking forward to today’s EIA release, which hopefully will contradict yesterday’s bearish API numbers. Among the trending stocks are Godaddy Inc (NYSE:GDDY), Monsanto Company (NYSE:MON), Agrium Inc. (USA) (NYSE:AGU), ConocoPhillips (NYSE:COP), and Green Plains Inc (NASDAQ:GPRE). Let’s see why each stock is in the spotlight and examine the smart money sentiment towards them.

While there are many metrics that investors can assess in the investment process, the hedge fund sentiment is something that is often overlooked. However, hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor to beat the S&P 500 by around 95 basis points per month (see the details here).

Godaddy Down on S-3 Form

Godaddy Inc (NYSE:GDDY) is in the red this morning after the company filed a S-3 with the SEC to allow investors who own 4,193,829 shares to sell at a maximum price per share of $31.55. GoDaddy will not receive any cash proceeds from the issuance of any of the Class A common stock registered. Shares of the stock were up 2% year-to-date before the news and trade at 88 times forward earnings estimates (although that number will presumably drop as Godaddy grows). At the end of March, 22 funds tracked by Insider Monkey were long Godaddy Inc (NYSE:GDDY) at the end of March, compared to 24 funds a quarter earlier.

UBS Hikes Price Target on Monsanto

Analysts at UBS have reiterated their ‘Buy’ rating on Monsanto Company (NYSE:MON) while raising their price target to $122 from $97 per share. The analysts expect Bayer to purchase Monsanto at that price level, citing both parties ‘seem open to constructive talks’. Bayer previously offered to buy Monsanto for $122 per share, but Monsanto refused, hinting that it is looking for a higher price. Bayer has said it wouldn’t increase its bid until Monsanto provides more data on its business, which Monsanto hasn’t provided yet. A total of 51 investors we track had a long position in Monsanto Company (NYSE:MON) at the end of the first quarter.

On the next page, we are going to take a look at the developments surrounding Agrium, ConocoPhillips, and Green Plains.

Analysts Give the thumbs up to Agrium 

Agrium Inc. (USA) (NYSE:AGU) is in the spotlight today after analysts at UBS reiterated their ‘Buy’ rating on Agrium and raised their target price to $102 per share from $93 per share. The analysts think, ‘fertilizer markets are bottoming as Ag fundamentals and crop prices improve’. If the bottom is close or in, Agrium’s free cash flow could be higher than expected and its stock could rally. Among the funds we track, 23 funds owned $452.49 million worth of Agrium Inc. (USA) (NYSE:AGU)’s stock, which accounted for 3.70% of the float on March 31, versus 22 funds and $1.2 billion, respectively, a quarter earlier.

ConocoPhillips Pipeline Leaks

A ConocoPhillips (NYSE:COP) pipeline has leaked around 2,400 barrels on ultra-light crude, potentially threatening an endangered grizzly bear and caribou range in Canada’s  Alberta province, Canada. To protect the environment, the province’s government has shut down the pipeline and is investigating the reason for the leak. ConocoPhillips shares are unchanged in pre-market trading as traders focus more on today’s EIA numbers and the dollar’s movements after the FOMC meeting. The number funds from our database with holdings in ConocoPhillips (NYSE:COP) rose by 14 quarter-over-quarter to 45 at the end of March.

Green Plains Partners Up With Fortress

Green Plains Inc (NASDAQ:GPRE) has entered into a joint venture with a subsidiary of Fortress Transportation and Infrastructure Investors LLC to build and operate an intermodal import/export fuel terminal in Beaumont, Texas. The venture will be 50/50 owned and is expected to cost around $55 million in its first phase of development. If successful, the venture could help Green Plains increase its revenue and EBITDA. Shares of Green Plains are down by 18% year-to-date and could use a little good news. A total of 21 funds tracked by Insider Monkey owned shares of Green Plains Inc (NASDAQ:GPRE) at the end of March, up by four funds from the previous quarter.

Disclosure: none