Traders are watching crude today after yesterday’s API report showed a surprise draw of 3.8 million barrels versus expectations of a build of 2.4 million barrels.
Among the securities that traders are also watching are Yahoo! Inc. (NASDAQ:YHOO), Intuitive Surgical, Inc. (NASDAQ:ISRG), Cree, Inc. (NASDAQ:CREE), Intel Corporation (NASDAQ:INTC), and Interactive Brokers Group, Inc. (NASDAQ:IBKR), as each just reported their latest quarterly results. Let’s take a closer look at their earnings reports and see how successful hedge funds have been trading these stocks.
At Insider Monkey, we track around 750 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on, can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see the details here).
Although it might not matter if the Verizon Communications Inc. (NYSE:VZ) deal goes through, Yahoo! Inc. (NASDAQ:YHOO) reported solid results for its third quarter, with EPS of $0.20 on sales of $1.31 billion, versus the Street’s estimate of $0.14 and $1.31 billion respectively. Sales rose by 6.5% year-over-year, led by a 24.2% jump in mobile, video, native and social sales. Mobile sales also surged by 46.1% to $396 million. In terms of guidance, Yahoo’s management expects adjusted EBITDA of $810 million-to-$850 million and adjusted income from operations of $300 million-to-$340 million for the full year. Jeffrey Smith‘s Starboard Value owned 12.29 million shares of Yahoo! Inc. (NASDAQ:YHOO) at the end of June, good for 16.34% of the value of the activist fund’s public equity portfolio at that time.
Traders are watching Intuitive Surgical, Inc. (NASDAQ:ISRG) after the advanced medical equipment maker reported third quarter EPS of $6.19 on revenue of $682.9 million, which came in $1.06 and $32.41 million ahead of the consensus estimates respectively. Revenue for the quarter jumped by 15.8% year-over-year as Da Vinci shipments rose by 16.5%, coming in at 134. For its 2016 fiscal year, the company expects its procedure growth to be at the high end of its previous 14%-to-15% range. Of the 749 hedge funds that we track which filed 13Fs for the June quarter, 31 funds owned $1.11 billion worth of Intuitive Surgical, Inc. (NASDAQ:ISRG) shares on June 30, up from 27 funds with $1.09 billion in holdings on March 31.
On the next page we’ll examine the latest earnings reports from Cree, Intel, and Interactive Brokers Group.