Markets inched up on Monday morning as investors anxiously await Federal Reserve Chair Janet Yellen’s speech in the afternoon at World Affairs Council in Philadelphia. Yellen had hinted a rate hike a few weeks ago, but a bad job report on Friday has weakened the chances of the FOMC raising the rates this month. Some of the stocks which investors are watching closely today include Devon Energy Corp (NYSE:DVN), Monsanto Company (NYSE:MON), Cabelas Inc (NYSE:CAB), Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT), and Alibaba Group Holding Ltd (NYSE:BABA). Let’s see why these stocks are on the radar and analyze hedge funds sentiment towards each of them.
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Devon Energy Selling Assets
Devon Energy Corp (NYSE:DVN) announced on Monday that it would sell several of its production assets in Texas for nearly $1 billion, under its plan to improve its financial position. These assets include fields in Texas and Oklahoma and a royalty interest in the northern Midland Basin. The Oklahoma-based oil company, which has borne the brunt of declining oil prices, also said that it would announce the sale of its 50% interest in Canada’s Access Pipeline, which supplies oil across northeastern Alberta. Devon Energy Corp (NYSE:DVN)’s stock has gained over 4% since the opening bell. A total of 58 funds from our database were long Devon Energy Corp (NYSE:DVN) at the end of the first quarter of 2016, having amassed approximately $1.4 billion worth of stock. Among them, First Eagle Investment Management owns more than 9.6 million shares of the company.
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Uncertainty Around Monsanto’s Acquisition
Monsanto Company (NYSE:MON)’s stock has inched down by 1.53% so far on Monday following a report from Barron’s, according to which the acquisition of the company by Germany’s Bayer may not happen since Bayer might not be able come up with enough seed money to bid more than the already offered $62 billion for the Missouri-based Agrochemical Company. The source said that the growth prospects of Monsanto are also eroding. Its earning consensus for the next fiscal year has declined to $5.48 per share from $6.33. Out of some 760 elite funds we track, 51 funds owned $2.45 billion worth of Monsanto Company (NYSE:MON)’s shares, versus 38 funds a quarter earlier. Larry Robbins’ Glenview Capital owns around 11 million shares of the company, according to its latest 13F filing.
On the next page, we will discuss Cabelas, Starwood Hotels, and Alibaba.
Sell Cabelas Shares Before Things Go Bad: Barron’s
Shares of Cabelas Inc (NYSE:CAB) have lost more than 2% after another Barron’s article suggested the shareholders of the Nebraska-based hunting and fishing equipment maker to “seriously consider” making a profit by selling its shares at the current stock price before the company sells itself or its several assets. The report said that the company is facing a lot of challenges and any acquisition offer is unlikely to come at a good premium. As of the end of March, Paul Singer’s Elliott Management is one of the biggest stakeholders of Cabelas Inc (NYSE:CAB) in our system with more than 6 million shares of the company. It is one of the 23 funds from our database that reported stakes in the company in the latest round of 13F filings.
Starwood Hotels & Resorts To Build Two Hotels in Saudi Arabia
Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) has struck an agreement with Saudi Real Estate to build two hotels in the district of Riyadh, adjacent to King Abdullah Financial District, Saudi Arabia. The Saudi government is planning to transform this area into a special business zone with competitive regulations and visa exemptions for foreigners. Saudi Real Estate, which owns the land where the hotels will be built, didn’t disclose the details of the agreement. At the end of the first quarter, 56 funds from our database held long positions in Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) worth approximately $4.4 billion in aggregate. Boykin Curry’s Eagle Capital Management owns more than 6.5 million shares of the company.
Nestle Upgrades Its Partership with Alibaba
Alibaba Group Holding Ltd (NYSE:BABA)’s stock has climbed more than 1.40% today amid Nestle’s announcement to upgrade its partnership with the eCommerce giant. The Switzerland-based food company has started selling around 67 new brands on Alibaba’s Tmall.com portal. This is an effort by Nestle to ramp up its struggling business in China. At the end of the first quarter, 67 funds tracked by Insider Monkey had stakes in Alibaba Group Holding Ltd (NYSE:BABA), down from 77 funds a quarter earlier.
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