The markets opened lower today after the Labor Department reported that the Consumer Price Index increased by 0.4% in April, the largest monthly gain since February 2013. Some of the stocks we are watching today include MGT Capital Investments Inc. (NYSEMKT:MGT), Hertz Global Holdings Inc (NYSE:HTZ), Community Health Systems (NYSE:CYH), Franklin Resources, Inc. (NYSE:BEN), and Office Depot Inc (NASDAQ:ODP). Let’s see what’s making these stocks move today and also analyze hedge fund sentiment towards them.
Academic research has shown that certain insider purchases historically outperformed the market by an average of seven percentage points per year. This effect is more pronounced in small-cap stocks. Another exception is the small-cap stock picks of hedge funds. Our research has shown that imitating the 15 most popular small-cap stocks among hedge funds outperformed the market by nearly a percentage point per month between 1999 and 2012 (read more details here).
MGT Capital Gets New CEO, Signs Various Deals
MGT Capital Investments Inc. (NYSEMKT:MGT)’s shares continue to skyrocket after the appointment of cyber security guru John McAfee as the company’s CEO last week. The New York-based tech firm has also announced the acquisition of assets from D-Vasive, an anti-spy software company, for $300,000 in cash and 23.8 million restricted shares of MGT. MGT Capital Investments has also entered into agreements with technology incubators Future Tense Secure Systems and Round House LLC. MGT Capital will now be re-branded as John McAfee Global Technologies. Shares of the company are up by 37% today and by an astounding 1,682% this year.
Two hedge funds in our system were poised for monstrous gains in their holdings, as they reported long positions in MGT Capital Investments Inc. (NYSEMKT:MGT) as of the end of 2015.
Insider Buying at Hertz Global Holdings
Hertz Global Holdings Inc (NYSE:HTZ) shares have surged by more than 12% after a couple of insider buying transactions were disclosed with the SEC yesterday. Hertz Global’s CEO John Tague bought 66,000 shares of the company on May 13 and May 16, at prices between $7.80 and $7.85 per share. Meanwhile, Thomas Kennedy, Hertz Global’s Chief Financial Officer, purchased 40,000 shares on May 13 at an average price of $7.76 per share.
As of the end of last year, 52 hedge funds in our system had stakes in Hertz Global Holdings Inc (NYSE:HTZ), worth approximately $2.4 billion. As of March 31, Carl Icahn’s Icahn Capital LP owns approximately 63.7 million shares of the company.
We will discuss the latest concerning Community Health Systems, Franklin Resources and Office Depot on the next page.