Tempur Sealy (TPX), GrubHub (GRUB), United States Steel Corporation (X) Among Top Weekly Gainers

It was a mixed week for the market last week, as the Dow gave up 0.75% of its value, while the S&P 500 was down slightly, and the Nasdaq was 1.21% in the green. Positive earnings releases from Apple Inc. (NASDAQ:AAPL), Alphabet Inc (NASDAQ:GOOGL), Facebook Inc (NASDAQ:FB), and Amazon.com, Inc. (NASDAQ:AMZN) during the past week helped push the Nasdaq higher, while broader economic uncertainty and The Fed’s decision to leave interest rates unchanged for at least the next two months dragged down the other two indexes.

While the aforementioned tech stocks all enjoyed strong showings last week, they were greatly outdone by several stocks, including GrubHub Inc (NYSE:GRUB), Evoke Pharma Inc (NASDAQ:EVOK), Tempur Sealy International Inc (NYSE:TPX), Alimera Sciences Inc. (NASDAQ:ALIM), and United States Steel Corporation (NYSE:X). Let’s check out how these stocks performed last week and what led to those glowing performances. Let’s also take a peek at hedge fund ownership data to see how top investors have been playing these stocks in recent months.

Through extensive research that covered the portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see the details here).

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Evoke Pharma Rebounds on FDA Decision

Evoke Pharma Inc (NASDAQ:EVOK) was white-hot on Thursday, gaining 47.8% after it was revealed that the FDA had conditionally accepted the company’s Gimoti brand name for its metoclopramide nasal spray EVK-001. For the week, shares gained 62.9%, which has taken some of the sting out of their cataclysmic 73% loss on July 18 after that same EVK-001 missed its primary endpoints in a phase 3 study for the treatment of diabetic gastroparesis in female patients.

With the FDA having now conditionally accepted the Gimoti name, Evoke Pharma President and CEO Dave Gonyer, R.Ph., believes that it is still worth seeking approval for the drug. The company plans to undertake further phase 3 studies, believing the results from the failed study to be “an anomaly”.

Three hedge funds in our database were shareholders of Evoke Pharma Inc (NASDAQ:EVOK) on March 31, owning 3.40% of its float.

GrubHub Jumps on Record Results

It was also a big Thursday that propelled GrubHub Inc (NYSE:GRUB) to a strong week, in which it gained 19.41%. The online restaurant marketplace operator easily topped estimates with its second quarter financial results released on Thursday morning, as active diners jumped by 24% during the quarter to a record 7.35 million. Revenue came in at $120.2 million, with non-GAAP EPS coming in at $0.23. Estimates had predicted revenue of $114.2 million and EPS of $0.19. The company’s third quarter revenue guidance also topped estimates of $113.9 million, checking in at $116 million-to-$119 million. The company cited improvements made to its ratings and review system for its improved performance.

Ross Turner‘s Pelham Capital was one of 23 hedge funds in our database that were long GrubHub Inc (NYSE:GRUB) on March 31, owning 5.77 million shares of the stock.

We’ll check out the performance of three other top weekly gainers on the next page.

Peaceful Sleep Ahead for Tempur Sealy Shareholders After Big Quarter

Tempur Sealy International Inc (NYSE:TPX) gained over 23% last week after its second quarter results dwarfed estimates, finishing off an impressive July in which the stock gained nearly 37%. Revenue of $804.4 million topped estimates by $19 million and was $40 million higher than a year earlier, while operating income rose by 92% year-over-year. Adjusted EPS of $0.92 routed estimates by $0.23 and was up by 38.1% year-over-year. After having bought back 4.4 million shares since early-February, Tempur Sealy also expanded its share repurchase program by an additional $200 million.

32% of Tempur Sealy International Inc (NYSE:TPX)’s outstanding shares were held by the hedge funds in our database on March 31. Overall, 33 of those hedge funds were long the stock.

Alimera Sciences Blows Away Estimates With Pre-Announced Q2 Revenue

Alimera Sciences Inc. (NASDAQ:ALIM) was the strongest performer in this list, gaining over 93% during the week. While its quarterly report isn’t scheduled to be released until August 3, Alimera pre-announced its second quarter revenue on July 26, which trounced the consensus estimate of $7.25 million, tipping the scales at between $9.3 million and $9.5 million. Revenue in the U.S. alone is expected to come in between $7.0 million and $7.2 million. The company also announced that its debt agreement with Hercules Capital Inc (NYSE:HTGC) has been amended, lessening Alimera’s liquidity threshold and three-month revenue requirement, providing the company with enhanced financial flexibility.

Thomas Ellis and Todd Hammer’s North Run Capital owned 3.5 million shares of Alimera Sciences Inc. (NASDAQ:ALIM) at the end of March.

Improving Results for United States Steel Corporation

Lastly, United States Steel Corporation (NYSE:X) continued its torrid 2016 run last week, gaining another 30%. That pushed its yearly gains to over 244%, thanks to hefty duties being levied on imported steel from China, which has raised the price of steel and in turn improved the Pennsylvania-based steel producer’s results. For the second quarter, revenue fell by 11% year-over-year to $2.58 billion and missed estimates of $2.68 billion. However the steel maker’s $0.31 per share loss was well ahead of the expected loss of $0.49 per share. United States Steel’s European operations were particularly strong, achieving their best quarterly results in over seven years.

28 hedge funds in our database held stakes in United States Steel Corporation (NYSE:X) at the end of the  first quarter, up from 22 a quarter earlier.

Disclosure: None