MGT Discusses Subpeona, UPS Bringing 3D Printing to Singapore, Plus Bullish Calls On Facebook, Enterprise Products, and Lockheed

The markets are relatively calm, as all three indexes are in the green despite last weekend’s explosion in New York City that fortunately didn’t kill anyone.

While Wall Street is a little taken aback by the news, many traders also have their eyes on several stocks this morning. In this article, we’ll see what they’re saying about Lockheed Martin Corporation (NYSE:LMT), MGT Capital Investments Inc. (NYSEMKT:MGT), Facebook Inc (NASDAQ:FB), Enterprise Products Partners L.P. (NYSE:EPD), and United Parcel Service, Inc. (NYSE:UPS), and check out how successful hedge funds are positioned in them using the latest 13F data.

While there are many metrics that investors can assess in the investment process, the 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 to beat the S&P 500 by around 95 basis points per month (see the details here).

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Lockheed Martin Corporation (NYSE:LMT) is in the spotlight after the U.S. Air Force grounded at least 10 F-35s for ‘peeling and crumbling’ insulation around the jets. Fortunately for Lockheed bulls, the issue isn’t due to a design flaw with the F-35, but instead has to do with a subcontractor’s manufacturing methods. On another note, analysts at Wells Fargo upgraded the aerospace & defense stock to ‘Outperform’ from ‘Market Perform’, noting the company’s potential to grow earnings by around 20% a year through 2020. Wells Fargo has a price target of $275-to-$280 on the stock, up from its previous range of $255-to-$260. Ken Griffin‘s Citadel Investment Group established a new stake of over 650,000 shares in Lockheed Martin Corporation (NYSE:LMT) during the second quarter.

Traders are talking about MGT Capital Investments Inc. (NYSEMKT:MGT) today after the company announced that it had received a subpoena from the Securities and Exchange Commission on September 15 requesting “certain information from the company.” MGT added that it has “no indication or reason to believe that the Company is or will be the subject of any enforcement proceedings.” MGT’s management is fully cooperating with the SEC’s request. Of the 749 hedge funds that we track which filed 13Fs for the June quarter, just four were long MGT Capital Investments Inc. (NYSEMKT:MGT) at the end of the second quarter, up from only one at the end of March.

On the next page, we’ll find out why Facebook, Enterprise Products, and UPS are trending this morning.

Count Citi’s Mark May as one of Facebook Inc (NASDAQ:FB)‘s uber-bulls on Wall Street. The analyst recently upped his price target on the social media company to $158 per share from $148, commenting that, “it feels like it is still early days for the company” as Facebook continues to make progress monetizing its billion-plus user base. Mr. May thinks the consensus on Wall Street could potentially prove conservative and that Facebook’s valuation multiple could increase as investors become more confident on the company’s future. Facebook was the second-most widely held stock by the smart money in our system at the end of the second quarter, with 148 funds long the social media giant.

Now that it isn’t interested in merging with Williams Companies Inc (NYSE:WMB) (at least at the present moment), Enterprise Products Partners L.P. (NYSE:EPD) has won some more fans among the analyst community. John Edwards of Credit Suisse is one of the latest converts, as he raised his rating on the energy mover to ‘Outperform’ from ‘Neutral’ and retained his $34 per share price target on it, citing the attractive risk/reward prospects at its current price, as well as Enterprise Products’ solid management team and the stock’s juicy annual dividend yield of 6.05%. Hedge fund sentiment towards Enterprise Products Partners L.P. (NYSE:EPD) was relatively stable in the second quarter, with 28 funds that we track owning shares of it at the end of June, up by one fund quarter-over-quarter.

Investors are buzzing about United Parcel Service, Inc. (NYSE:UPS) after the logistics company announced that it will bring its 3D printing service to Singapore by the end of 2016 with the help of its partner, Fast Radius. UPS already offers a similar service in parts of the United States, where customers can have requested parts printed at a Fast Radius factory or at the 60 UPS stores equipped with 3D printers, in addition to UPS delivering them on demand. UPS is expanding its 3D printing business because its management thinks that 3D printing could eventually threaten its warehousing business and UPS wants to be the one that disrupts itself, in a sense, not have others do so. 33 funds in our database owned $1.45 billion worth of United Parcel Service, Inc. (NYSE:UPS) shares on June 30, which accounted for 1.50% of the float.

Disclosure: None