Upgrades, Downgrades, & Restructuring, Oh My!: Why Investors Are Buzzing About These 5 Stocks

Time Inc Appoints New Chief Content Officer

The long-awaited restructuring of Time Inc (NYSE:TIME) might finally be here. It’s been reported that Fortune editor Alan Murray will be named as the publisher’s new Chief Content Officer, replacing Norm Pearlstine, who will step down and become Time Inc (NYSE:TIME) CEO Joe Ripp’s consultant on international affairs. There is also expected to be some downsizing, though it has yet to be announced. The company recently announced plans to shift its strategy towards digital content and social media, hoping to boost revenue by 1%-to-5% in 2016. Although Time Inc shares opened higher this morning, the stock could not hold on to the gains and has dipped slightly into the red. Hedge fund interest in Time Inc (NYSE:TIME) inched up during the first quarter, reaching 21 long positions among the funds in our system, up from 19 registered three months earlier.

Weak Demand For Luxury Goods

News from across the Atlantic could spell trouble for U.S luxury brands, including Tiffany & Co. (NYSE:TIF). London luxury fashion house Burberry said that it experienced a fall in comparable-store sales for the second quarter. Burberry also said that it continued to see “uneven demand” in the U.S and that tourist spending remained low. In other Tiffany-related news, the Royal Bank of Canada issued an update on Tiffany & Co. (NYSE:TIF)’s stock, lowering its price target on it to $65 per share from $68, while reiterating its ‘Sector Perform’ rating. This implies a mere 3.7% upside potential from yesterday’s closing price. At the end of March, approximately 4% of Tiffany & Co. (NYSE:TIF)’s common stock was held by 26 hedge funds in our database.

Analysts Talk Williams Companies

Williams Companies Inc (NYSE:WMB) is also making headlines today. Analysts at Goldman Sachs have restated their ‘Buy’ rating on the stock and their price target of $25 per share, suggesting upside potential of 14% from yesterday’s close. Morgan Stanley has also re-initiated covered on the stock with an ‘Equal Weight’ rating and $24 price target. After the proposed merger between Williams Companies Inc (NYSE:WMB) and Energy Transfer Equity LP (NYSE:ETE), half of the Williams Board resigned, including activist investors Eric W. Mandelblatt and Keith Meister, whose funds collectively hold 8.4% of Williams’ stock. None of them, however, sold their stakes in the company and their comments hint at the possibility of a proxy fight to wipe out the entire board now that the merger has fallen through. It is yet unclear when the board will face election.

The popularity of Williams Companies Inc (NYSE:WMB) among the funds we follow took a hit during the first quarter, with the number of long positions dropping to 52 from 59. Together these funds held approximately 19% of the company’s common stock.

Disclosure: None