Why These 5 Stocks Are Making Noise Today

McDonald’s Continues its Asset Light Initiative

McDonald’s Corporation (NYSE:MCD) shares are 0.59% in the green this morning after Reuters reported that the restaurant chain is targeting PE firms such as Bain Capital, TPG Capital, and others, for a sale of 2,800 restaurants in North Asia. McDonald’s has a long-term goal of franchising 95% of its stores, and selling the 2,800 restaurants to third-party owners would help with that initiative. Like its other franchised stores, McDonald’s would still receive ongoing royalty fees after the sale. McDonald’s Corporation (NYSE:MCD) shares have rallied by 8% year-to-date and the company counted 84 hedge funds in our system as shareholders of its stock at the end of December, up from 75 at the end of September.

A Troubled Drug Maker Finds its Credit Downgraded

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is slightly in the red this morning, by 2.24%, after Standard & Poor’s lowered the company’s credit rating to ‘B’ from ‘B+’. The agency cited the risk that Valeant may be unable to file its annual report by April 29, putting it in default with debt holders, as the reason for the downgrade. Mark T. Gallogly‘s Centerbridge Partners filed a default notice earlier this week, related to the delay in Valeant filing its annual report. In a statement, Valeant said that the company can cure the potential default if it files its annual report by June 11. Valeant also said it is on schedule to file its annual report on or before April 29. Bill Ackman’s Pershing Square and Jeffrey Ubben’s ValueAct Capital were major shareholders of Valeant Pharmaceuticals Intl Inc (NYSE:VRX) on December 31, and Mr. Ackman has since added more shares to his position.

Slower Quarter Expected for Seagate

Seagate Technology PLC (NASDAQ:STX) shares have fallen by 18% this morning after the company warned that its financial results for the third quarter of fiscal year 2016 will come in lower than previously guided. For the time period, the hardware driver maker now expects sales of $2.6 billion and gross margin of 23%, versus previous estimates of $2.7 billion and 25.6%. Seagate also expects to ship 39 million hard drives. Sales were weaker-than-expected due to lower mission-critical enterprise sales and soft desktop demand. 25 funds in our system owned $374.41 million worth of Seagate Technology PLC (NASDAQ:STX)’s shares on December 31, which accounted for 3.40% of the float.

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