Nintendo, Juno Therapeutics Among 5 Stocks Making Headlines Thursday

Traders are watching crude today after yesterday’s API inventory report showed the largest draw since 1999, down by around 12 million barrels. If today’s EIA report confirms the API numbers, the worries over oversupply in the industry will quickly evaporate.

In addition to crude, traders are also talking about five companies today, Guidewire Software Inc (NYSE:GWRE), Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY), Juno Therapeutics Inc (NASDAQ:JUNO), Gevo, Inc. (NASDAQ:GEVO), and ABM Industries, Inc. (NYSE:ABM). Let’s take a closer look at the five stocks and see how successful hedge funds have traded them of late.

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).

Barone Firenze / Shutterstock.com

Guidewire Software Inc (NYSE:GWRE) is in the red today after reporting fiscal 2016 fourth quarter earnings of $0.39 per share on revenue of $141.17 million. Although the results beat analysts’ estimates by $0.07 per share and $5.08 million, respectively, the company’s fiscal year 2017 guidance of adjusted EPS of $0.69-to-$0.79 on revenue of $471.5 million-to-$483.5 million might have underwhelmed some investors. For fiscal 2016, Guidewire’s total revenue rose by 12% year-over-year to $424.4 million, with license revenue rose by 23% to $219.8 million and service revenue inched lower by 4% to $144.8 million. Jim Simons‘ Renaissance Technologies trimmed its stake in Guidewire Software Inc (NYSE:GWRE) by 38% during the second quarter, to 74,600 shares at the end of June.

Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) is in the spotlight after Apple Inc. (NASDAQ:AAPL) included several Nintendo products in its iWatch/iPhone product presentation yesterday. Shares of the notoriously volatile Japanese company surged by 28% on Wednesday on the back of the news that the company will develop Super Mario Run for Apple iOS as well as make the company’s franchise hit Pokemon Go available for the Apple Watch Series. Bulls hope the mobile pivot will pad Nintendo’s bottom-line, which has been lacking over the past few years. None of the 749 hedge funds that we track which filed 13F’s for the June quarter held shares of Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) at the end of June.

On the next page, we’ll find out why Juno Therapeutics, Gevo Inc, and ABM Industries are trending this morning.

shares are in the green after the journal Science Translational Medicine published an article reflecting promising JCAR014 clinical data. JCAR014 is a chimeric antigen receptor (CAR) T-cell treatment and one of Juno’s drug candidates for the potential treatment of patients with relapsed or refractory Chronic Lymphocytic Leukemia, Non-Hodgkin Lymphoma, or Acute Lymphoblastic Leukemia. 50% of the 18 patients whose results could be evaluated for the dose-finding study experienced a complete response from the use of JCAR014 in combination with the chemotherapy agents fludarabine and cyclophosphamide. Early results from the use of an intermediate dose of JCAR014 in combination with the above-mentioned agents has delivered even better results, with 64% of the 11 patients experiencing a complete response. The number of hedge funds in our system with holdings in Juno Therapeutics Inc (NASDAQ:JUNO) fell by three quarter-over-quarter to 11 at the end of June.

Gevo, Inc. (NASDAQ:GEVO) is deep in the red today after announcing its intention to execute a public offering of common stock and warrants, the size and pricing of which has not been disclosed. Gevo plans to use the funds for general corporate purposes and to fund working capital. News of the offering followed yesterday’s news that Gevo had entered into a heads of agreement with Deutsche Lufthansa AG to supply its alcohol-to-jet fuel. The heads of agreement is non-binding and subject to completion of a binding off-take agreement. Three funds that we track owned shares of Gevo, Inc. (NASDAQ:GEVO) at the end of the second quarter, up by one from the end of the previous quarter. As with all volatile stocks, due-diligence is a must before considering any trades.

ABM Industries, Inc. (NYSE:ABM) earned $0.54 per share for its third quarter of fiscal year 2016, beating estimates by $0.14. Revenue for the period was $1.3 billion, up by 3.8% year-over-year, and missing the consensus target by $10 million. Organic revenue increased by 2.2%, led by strong growth in the company’s Janitorial segment. Adjusted EBITDA for the quarter was $61.1 million, up from $49.1 million a year earlier, while adjusted EBITDA margin came in at 4.7%, topping the 3.9% mark from a year ago. For the full 2016 fiscal year, ABM’s management expects adjusted income from continuing operations of between $1.70 and $1.75 per share. 15 funds that Insider Monkey tracks were long ABM Industries, Inc. (NYSE:ABM) at the end of June.

Disclosure: None