In this article, we will discuss some of the notable stocks on the move today.
According to a Bloomberg index, the liquidity in US government securities has decreased since the start of the year, hitting values not seen since the initial phase of the coronavirus pandemic. This month’s price fluctuations have been compounded by poor trading conditions, with investors becoming anxious about how efficiently the market will operate as the Fed begins to reduce the size of its $9 trillion balance sheet. As of 1:32 PM ET, all three primary indices are in the red today, with popular stocks such as Meta Platforms, Inc. (NASDAQ:FB), The Kroger Co. (NYSE:KR), and Micron Technology, Inc. (NASDAQ:MU) being in the spotlight.
Let’s discuss the reasons why these stocks are trending today and take a look at how elite funds are positioned in them.
10. Pearson plc (NYSE:PSO) has fallen over 6% as of 9:53 AM ET after the New York-based investment company Apollo decided to walk away from the deal to acquire the London-based education group. Apollo made a third takeover bid of $8.8 billion for Pearson plc (NYSE:PSO), which was rejected by the company.
Only eight hedge funds held a long position in Pearson plc (NYSE:PSO) as of Q4 2021. Kenneth Squire-led 13D Management is the leading hedge fund investor in Pearson plc (NYSE:PSO), with a stake worth around $6.95 million.
9. AMC Entertainment Holdings, Inc. (NYSE:AMC) is down 6.8% for the day as of 9:53 AM ET. The stock price has tumbled after Pacific Management Investment Management Company (Pimco) co-founder Bill Gross termed the stock a lottery stock. Gross thinks that shorting AMC Entertainment Holdings, Inc. (NYSE:AMC) would reap benefits in the long run as the stock price will fall sooner or later.
However, the hedge fund manager is being considered on the wrong side of the trade as the stock price of AMC Entertainment Holdings, Inc. has surged more than 43% in the last two weeks. According to data compiled by Insider Monkey, 17 hedge funds held a stake in AMC Entertainment Holdings, Inc. as of Q4 2021.
8. BioNTech SE (NASDAQ:BNTX) is up 2.7% as of 9:53 AM ET after the COVID-19 vaccine manufacturer reported strong Q4 2021 results and shared other positive developments. BioNTech SE (NASDAQ:BNTX) sold 2.6 billion COVID-19 vaccines in 2021 and has already signed orders to deliver 2.4 billion vaccines this year.
Moreover, BioNTech SE announced a special dividend for its shareholders and also shared its plan to buy back $1.5 billion worth of stock in the next two years. As of Q4 2021, 27 hedge funds had a stake in BioNTech SE. Coatue Management is the leading investor in the company, with a stake worth over $272 million.
7. Lululemon Athletica Inc. (NASDAQ:LULU) has risen 7.3% as of 9:57 AM ET after the Vancouver, British Columbia-based athleisure brand reported its Q4 2021 earnings yesterday. The earnings result has received positive feedback from analysts across the market.
John Kernan at Cowen increased the price target on Lululemon Athletica Inc. from $491 to $507. The analyst highlighted that despite the presence of headwinds in the form of the Omicron variant of COVID-19, inflationary pressure, and supply chain disruptions, the company has managed to perform well. Of the 924 hedge funds in Insider Monkey’s database, Lululemon Athletica Inc. was held by 43 funds as of Q4 2021.
6. Occidental Petroleum Corporation (NYSE:OXY) has risen 3.3% as of 9:55 AM ET after the target price of the crude oil and natural gas exploration and production (E&P) company was revised by more than 41% by John Freeman at Raymond James. The analyst increased the target price on Occidental Petroleum Corporation (NYSE:OXY) from $60 to $85 while maintaining a Strong Buy rating on the stock.
In a note issued to investors on March 30, Freeman highlighted that after the record-breaking performance in FY 2021, Occidental Petroleum Corporation is not as highly leveraged as it used to be. As of Q4 2021, 58 hedge funds reported owning a stake in Occidental Petroleum Corporation.
In addition to Occidental Petroleum Corporation, some notable movers today include Micron Technology, Inc., Meta Platforms, Inc., and The Kroger Co..
5. Micron Technology, Inc. (NASDAQ:MU) has soared nearly 4% as of 9:56 AM ET after the manufacturer and seller of semiconductors reported strong earnings and outlook, receiving the support of analysts. Vijay Rakesh at Mizuho increased the price target on Micron Technology, Inc. from $110 to $113, reflecting a potential upside of over 40% from the last closing price. The analyst thinks that Micron Technology, Inc. is ‘well-positioned’ to capitalize on the opportunities in the data center, PC, and mobile segments.
Of the 924 hedge funds in Insider Monkey’s database, 83 held a stake in Micron Technology, Inc. at the end of Q4 2021.
4. Meta Platforms, Inc. (NASDAQ:FB) has fallen nearly 1% as of 9:57 AM ET after it was revealed that Meta Platforms, Inc. paid a Republican consulting firm to damage the image of competitor social media giant, TikTok. The campaign included the use of editorials and letters to the editors of major media outlets, painting TikTok as a danger to children.
Meta Platforms, Inc. is already under pressure as the social media conglomerate lost daily active users during the last three months of 2021. Meta Platforms, Inc. was held by 224 hedge funds at the end of Q4 2021.
3. The Kroger Co. (NYSE:KR) is 0.6% in the green as of 9:55 AM ET. The Cincinnati, Ohio-based grocery retailer has received attention from activist investor Carl Icahn. Icahn has nominated two directors to the board of the company and has raised his concerns regarding the application of gestation crates for pigs. He also voiced his displeasure over putting an end to the $2 per hour ‘hero bonus’ that The Kroger Co. granted to the front lines workers during the pandemic.
Out of the 924 hedge funds covered by Insider Monkey, 41 funds had a stake in The Kroger Co. as of Q4 2021. Warren Buffett’s Berkshire Hathaway Inc is the leading investor in The Kroger Co., with a stake worth $2.78 billion.
2. Wayfair Inc. (NYSE:W) has lost 6% of its value as of 9:57 AM ET after the Boston, Massachusetts-based furniture and home goods e-commerce company was downgraded to a Sell rating by Laura Champine at Loop Capital. The analyst gave Wayfair Inc. (NYSE:W) stock a price target of $90, as opposed to $95 previously. The target price shows a potential downside of nearly 25% from the last closing price. Overall, 28 hedge funds held a stake in Wayfair Inc. with a combined value of $2.11 billion. Spruce House Investment Management is long over 4.8 million shares of Wayfair Inc. as of Q4 2021.
1. RH (NYSE:RH) has plummeted 10.9% as of 9:58 AM ET as the company’s CEO Gary Friedman warned about the effects of inflation in a Tuesday earnings call.
The California-based home furniture retailer was, however, upgraded to a Buy rating by Jonathan Matuszewski at Jefferies with a price target of $560. The price target reflects a potential upside of over 45% from the last closing price. The analyst highlighted that RH stock has lost 50% of its value since its peak in August last year and provides a ‘rare entry point’ in a high-quality business. RH was held by 58 hedge funds as of Q4 2021.
You can also take a peek at the 10 Blue Chip Stocks with Dividends and 10 Dividend Stocks Better Than Cryptocurrencies.
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This article is originally published at Insider Monkey.
