It’s A Red Day for Digital Ally, Monster Worldwide, Och-Ziff, More

Although all three major indexes are well in the green, several stocks are not enjoying the fruits of the positive market sentiment. In this article, we’ll take a look at the latest movement in the shares of Digital Ally, Inc. (NASDAQ:DGLY), Monster Worldwide, Inc. (NYSE:MWW), Leidos Holdings, Inc. (NYSE:LDOS), Och-Ziff Capital Management Group LLC (NYSE:OZM), and DRDGOLD Ltd. (ADR) (NYSE:DRD), four of the five of which are deep in the red today. We’ll also see what elite funds in our database think of these stocks.

Our research determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor to beat the S&P 500 by around 95 basis points per month (see the details here).

Profit Taking at Digital Ally 

Digital Ally, Inc. (NASDAQ:DGLY) shares are 10% lower as traders take profit from the stock’s huge surge on Friday, after a Dallas shooter killed several police officers. The shooting renewed concerns over gun control and could potentially increase police defense spending. Shares of the company have been extremely volatile, consistently rallying during shootings or other tragic events, and giving back much of those gains after those events fade. Digital Ally, Inc. (NASDAQ:DGLY), which makes security products including on-body and in-car cameras for use by police, was not held by any of the 766 active funds that we track as of the end of March.

Analysts Downgrade Monster Worldwide

Monster Worldwide, Inc. (NYSE:MWW) is 4% in the red after analysts at BMO Capital downgraded the stock to ‘Market Perform’ from ‘Outperform’. Shares of the company have fallen by over 54% year-to-date despite a recent rally due to Microsoft Corporation (NASDAQ:MSFT)‘s acquisition of LinkedIn Corp (NYSE:LNKD). Bullish investors hope management can turn the company around. Shares would certainly look cheap if Monster’s earnings were more sustainable. The internet job portal’s stock currently sports a forward P/E multiple of 8.2. 19 funds in our system were long Monster Worldwide, Inc. (NYSE:MWW) at the end of March.

On the next page we’ll take a closer look at why Leidos Holdings, Och-Ziff Capital Management Group, and DRDGOLD are on the move today.

Leidos Holdings Down Despite Contract Announcement

Leidos Holdings, Inc. (NYSE:LDOS) has retreated by 7% today despite the company being awarded a prime contract by the Office of Naval Research to provide technical solutions for the Electromagnetic Maneuver Warfare Command and Control program. Leidos is one of 12 contractor companies eligible to compete for task orders under the contract, which has a total max contract value of $900 million for all awardees. Given the stock’s recent surge leading into the announcement, the sell-off today looks like a typical ‘buy the rumor, sell the news’ event. The number of funds in our database with long positions in Leidos Holdings, Inc. (NYSE:LDOS) rose by three quarter-over-quarter to 23 as of the end of March.

Analysts Downgrade Och-Ziff 

Och-Ziff Capital Management Group LLC (NYSE:OZM) is 5% in the red today after analysts at KBW downgraded the stock to ‘Market Perform’ from ‘Outperform’. Due to their hedged nature, some hedge funds have lagged the bull market, causing investors to initiate redemptions that might lower a hedge fund’s total income. The hedge fund industry managed $2.86 trillion in assets on March 31, below its all-time high of over $3.1 trillion. Shares of Och-Ziff have not done well this year, falling by 41% year-to-date. 15 elite funds that we track owned shares of Och-Ziff Capital Management Group LLC (NYSE:OZM) as of the most recent 13F reporting period, unchanged from the prior reporting period.

DRDGOLD Does a U-Turn 

After being down by over 5% at one point, DRDGOLD Ltd. (ADR) (NYSE:DRD) shares have rallied back into positive territory in afternoon trading. Traders are buying the stock due to the positive gold spot price, which as of this moment trades for $1359.50 per ounce. Some traders are buying gold in anticipation of a potential global recession in the future. Others are just buying due to the potential of a geopolitical conflict in the South China Sea or on the potential of an uprising in the Middle East. Five elite funds were bullish on DRDGOLD Ltd. (ADR) (NYSE:DRD) at the end of the first quarter.

Disclosure: None