GoPro, Oracle, Pfizer, and More: Traders Can’t Stop Watching These Stocks This Weekend

With the start of another trading week looming, traders are eagerly looking forward to the FOMC’s to-hike-or-not-to-hike interest rate decision on September 20-21.

In this article, we’ll examine five stocks that investors are eagerly watching this weekend, which are GoPro Inc (NASDAQ:GPRO), Pfizer Inc. (NYSE:PFE), TerraForm Power Inc (NASDAQ:TERP), Community Health Systems (NYSE:CYH), and Oracle Corporation (NYSE:ORCL) and use the latest 13F data to see how the smart money was positioned in each stock at the end of the second quarter.

Hedge fund sentiment is an important metric for assessing the long-term profitability. At Insider Monkey, we track over 750 hedge funds, whose quarterly 13F filings we analyze and determine their collective sentiment towards several thousand stocks. However, our research has shown that the best strategy is to follow hedge funds into their small-cap picks. This approach can allow monthly returns of nearly 95 basis points above the market, as we determined through extensive backtests covering the period between 1999 and 2012 (see the details here).

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Despite its recent relative strength and some upbeat analyst commentary around the stock, at least one Barron’s writer isn’t a big fan of GoPro Inc (NASDAQ:GPRO). According to the article, ‘Can GoPro Soar Again?‘, writer Alexander Eule writes that GoPro’s new drone product, the Karma, might not be able to make much of a positive impact on the stock due to its cost. Eule specifically writes:

“The GoPro Karma, as the drone will be called, will be able to track athletes from the air. In theory, it’s a great way for skiers and mountain bikers to automatically video themselves as they come down a mountain… But plenty of questions remain, including how many athletes will be able to afford the device.”

Hedge fund sentiment in the action camera maker was mostly stable in the second quarter.

Of the 749 hedge funds that we track which filed 13Fs for the June quarter, 16 funds were long GoPro Inc (NASDAQ:GPRO) at the end of June, unchanged from the end of the previous quarter.

Pfizer Inc. (NYSE:PFE) is on many investors’ watchlists after the drug company announced positive top-line results from a Phase 3 trial of PF-06438179, which is a potential biosimilar to Janssen’s Remicade. In the trial, PF-06438179 demonstrated equivalent efficacy and met its primary endpoint. Remicade, which is prescribed for various inflammatory diseases, brought in about $6.56 billion in sales in 2015. The positive results reinforce the notion that Pfizer has a promising pipeline. Ken Fisher‘s Fisher Asset Management owned 31.7 million shares of Pfizer Inc. (NYSE:PFE) at the end of June, down by 1% from the end of March.

On the next page we’ll examine why TerraForm Power, Community Health Systems, and Oracle Corporation are in the headlines.

Traders are talking about TerraForm Power Inc (NASDAQ:TERP) after the company issued its preliminary second quarter results. For the time period, management expects adjusted revenue of $198 million-to-$206 million, adjusted EBITDA of $152 million-to-$160 million, a net loss of ranging from $6 million to $20 million, and CAFD of negative $9 million to negative $17 million. Production is seen coming in at 2,037 GWh. 26 funds were long TerraForm Power Inc (NASDAQ:TERP) as of the most recent 13F reporting period, down by three funds from the end of the previous quarter.

Community Health Systems (NYSE:CYH) is in the headlines after Bloomberg published an article saying that the company is exploring its options, including a potential sale. Although shares of the stock have been beaten up over the past year, the article writer cautioned that there is no certainty a deal will go through and that the current deliberations are in an early stage. While some funds cut their stakes in Community Health Systems in the second quarter, the smart money was still a bit overweight the name nevertheless. According to our data, 33 funds that Insider Monkey tracks were long $280.14 million worth of Community Health Systems (NYSE:CYH) shares, which accounted for 20.40% of the float on June 30, while 42 funds held $493.04 million in Community Health Systems holdings on March 31.

While one Barron’s writer might not be a big fan of GoPro, a different writer certainly likes Oracle Corporation (NYSE:ORCL). In the article, ‘Oracle: Buy the Dip‘, writer Teresa Rivas argues that Oracle shares look cheap considering the 59% year-over-year increase in the company’s cloud computing sales. Rivas also notes that although Oracle lowered its guidance and reported soft earnings for its fiscal year 2017 first quarter, analysts expect the company’s earnings to grow again in its next fiscal year. Moreover, shares of the software maker yield around 1.5%, or very close to the current 10-year yield. 53 funds in our system owned shares of Oracle Corporation (NYSE:ORCL) as of the most recent 13F reporting period, down by nine funds from the previous one.

Disclosure: None