GoPro, Southwestern, FactSet Research and More: What is Going On With These Falling Stocks?

Although the broader indexes have risen largely on the back of solid consumer confidence data, shares of five companies, GoPro Inc (NASDAQ:GPRO), FactSet Research Systems Inc. (NYSE:FDS), Freeport-McMoRan Inc (NYSE:FCX), Southwestern Energy Company (NYSE:SWN), and Oasis Petroleum Inc. (NYSE:OAS), are each considerably lower for various reasons.

In this article, we examine why these stocks are trending lower and what the smart money investors from our database think about the companies in question.

Through extensive research, we determined that imitating some of the picks of hedge funds and other institutional investors can help generate market-beating returns over the long run. The key is to focus on the small-cap picks of these investors, since they are usually less followed by the broader market and are less price-efficient. Our backtests that covered the period between 1999 and 2012, showed that following the 15 most popular small-caps among hedge funds can help a retail investor beat the market by an average of 95 basis points per month (see the details here).

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GoPro Inc (NASDAQ:GPRO) is off by over 5% this afternoon after the drone-maker DJI, introduced the Mavic Pro, which will cost $999. GoPro presented its drone product, Karma, last week to great fan fare. GoPro’s Karma will cost $799 for consumers. Given DJI’s commanding market share in the drone sector, it is uncertain whether GoPro can capture enough market share in the growing sector to restore the stock to its former heights any time soon. According to our database of 749 funds, 16 of them held $124.94 million worth of GoPro Inc (NASDAQ:GPRO)’s stock, which accounted for 8.40% of the action camera maker’s float on June 30.

FactSet Research Systems Inc. (NYSE:FDS) is around 6% in the red after the company reported disappointing fiscal fourth quarter results. For the period, FactSet earned $1.69 per share, missing the consensus by $0.01 per share. Revenue was $287.3 million, up by 9.7% year-over-year, but $3.13 million below the average analyst estimate. Fiscal first quarter guidance is a bit soft, with FactSet Research expecting EPS of $1.62 to $1.66 on sales of $286 million to $292 million, versus the analyst estimates of $1.72 and $293.9 million, respectively. Brian Bares‘ Bares Capital Management inched up its stake in FactSet Research Systems Inc. (NYSE:FDS) by 5% to 478,638 shares during the second quarter.

On the next page, we find out why Freeport-McMoRan, Southwestern Energy Company, and Oasis Petroleum are down this afternoon.