Markets are trading in the green on Friday following easing Brexit fears and optimism over central bank’s intervention.
Investors are keenly watching some stocks today, including Micron Technology, Inc. (NASDAQ:MU), Vale SA (ADR) (NYSE:VALE), Transocean LTD (NYSE:RIG), Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) and Array Biopharma Inc (NASDAQ:ARRY). Let’s take a closer look at the companies in question and find out how the funds in our database are positioned towards them.
While there are many metrics that investors can assess in the investment process, 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 beat the S&P 500 by around 95 basis points per month (see more details here).
Micron Misses Revenue Estimates, Announces Layoffs
Micron Technology, Inc. (NASDAQ:MU)’s stock has plunged by over 10% so far today after posting disappointing results for the fiscal third quarter. Sales in the quarter fell by 24.8% on the year to $2.9 billion, missing the consensus estimate of $2.96 billion. However, non-GAAP adjusted loss of $0.08 per share was slightly better than the analysts’ estimates of $0.09. The Idaho-based company, which has been suffering from a weak demand for personal computers and facing a tough competition from rivals like Samsung, said it is going to cut jobs and peruse other cost reduction initiatives to save $300 million in fiscal 2017. Micron CEO Mark Durcan said in a statement that Micron continues to face challenges despite of “good progress” in the deployment of DRAM and NAND technologies. For the fourth quarter, Micron expects a loss of $0.24 – $0.16 per share. Among the funds tracked by us, 51 funds were bullish on Micron Technology, Inc. (NASDAQ:MU) at the end of March, down from 64 funds a quarter earlier.
Vale SA’s Surging after Iron Ore Rally
Investors are watching Vale SA (ADR) (NYSE:VALE) closely amid the company’s attractive prospects of growth following an increase in global iron ore demand due to Chinese government’s stimulus measures and a decline in Iron ore supplies from seaborne resources. The Brazil-based mining company recently surprised its investors by posting positive earnings in the latest quarter. Moreover, Vale remains insulated from the negative effects of Brexit due to its small dependence on the European markets. As of the end of the first quarter, 26 funds tracked by Insider Monkey are bullish on Vale SA, up from 18 funds a quarter earlier.
On the next page, we will discuss Transocean, Himax Technologies and Array Biopharma.
Evercore Upgrades Transocean
Transocean LTD (NYSE:RIG)’s stock has jumped by 5.55% so far today after brokerage firm Evercore upgraded the company to “Hold” from “Sell”, and raised the price target to $12. The firm is optimistic that Transocean has the right team to lead the company out of the “current downturn.” Recent rise in oil prices following a drawback in U.S. crude inventories are also contributing to Transocean’s stock gains. Overall, 39 funds from our database were bullish on the company at the end of March.
Himax Technologies’ CTO Retires
Himax Technologies, Inc. (ADR) (NASDAQ:HIMX)’s stock has declined by more than 6% so far after the company’s CTO and Senior Vice President Chih-Chung Tsai announced his retirement on Friday. Mr. Tsai has served the company as CTO for 11 years. The Taiwan-based semiconductor company said Mr. Tsai will be appointed as the vice chairman of Himax Technology Limited, a wholly-owned subsidiary of Himax Technologies. Among the funds from our database, 27 investors held shares of Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) at the end of the first quarter. Among them, Spencer M. Waxman’s Shannon River Fund Management owns approximately 2.44 million shares of the company.
Array Biopharma Submits Application for new Drug
Array Biopharma Inc (NASDAQ:ARRY)’s stock has advanced by 4.77% since market opening today after the company announced the submission of a New Drug Application (NDA) for Binimetinib, its drug for the treatment of patients suffering from NRAS-mutant melanoma. The submission is based on the results of the pivotal Phase 3 NEMO study, which found binimetinib significantly extended median progression-free survival (PFS), the study’s primary endpoint. Jeremy Green’s Redmile Group was one of the 20 funds tracked by us that amassed shares of Array Biopharma Inc (NASDAQ:ARRY) at the end of the first quarter.