ImmunoGen Inc. (NASDAQ:IMGN), Vipshop Holdings Limited (NYSE:VIPS), Urban Outfitters Inc. (NASDAQ:URBN), and TerraForm Power Inc. (NASDAQ:TERP) are riding the wrong way on the valuation course today, going against the tide as their shares are falling today due to various reasons. Let’s take a closer look at the news behind the performance of these stocks today and see how the funds from our database have been trading them.
We pay attention to hedge funds’ moves because our research has shown that hedge funds are extremely talented at picking stocks on the long side of their portfolios. It is true that hedge fund investors have been underperforming the market in recent years. However, this was mainly because hedge funds’ short stock picks lost a ton of money during the bull market that started in March 2009. Hedge fund investors also paid an arm and a leg for the services that they received. We have been tracking the performance of hedge funds’ 15 most popular small-cap stock picks in real time since the end of August 2012. These stocks have returned 102% since then and outperformed the S&P 500 Index by around 53 percentage points (see the details here). That’s why we believe it is important to pay attention to hedge fund sentiment; we also don’t like paying huge fees.
Clinical-stage biotechnology company ImmunoGen Inc. (NASDAQ:IMGN) began the week in a losing way, despite being named as one of The Boston Globe’s Top Places to Work. The recognition was given to the Massachusetts-based company for the third consecutive year. The Boston Globe’s Top Places to Work identifies companies admired in the state through a confidential survey conducted by a third-party. It’s unclear what specific catalyst, if any, has led to shares declining by over 6% today. A total of 14 hedge funds out of the 730 in our database held 9.40% of ImmunoGen Inc.’s (NASDAQ:IMGN) outstanding stock at the end of June.
Shares of Vipshop Holdings Limited (NYSE:VIPS) have withdrawn by 9.04% today after weaker-than-expected preliminary third quarter earnings were announced, along with downgrades from CLSA, Morgan Stanley, and Bank of America. CLSA downgraded Vipshop Holdings to “Underperform”, Morgan Stanley downgraded the company to “Equal Weight”, and Bank of America lowered its rating to “Neutral” following the release of the preliminary results. Vipshop Holdings Limited said it expects its total net revenue to grow by up to 63%, to RMB8.6 billion ($1.35 billion)-to-RMB8.7 billion ($1.37 billion) for the quarter, compared to the RMB9.1 billion ($1.43 billion)-to-RMB9.3 billion ($1.46 billion) it had previously forecast. The results remain subject to change based on management’s ongoing review of its third quarter results the company said in a Form 6-K filed today.
A total of 54 funds in our database held 17.00% of Vipshop Holdings Limited’s (NYSE:VIPS) outstanding stock on June 30.
On the next page we take a look at the latest developments concerning two more companies and their stocks.
Retail company Urban Outfitters Inc. (NASDAQ:URBN) has rolled 7.74% down the valuation charts in brisk trading after announcing that it will acquire The Vetri Family group of restaurants to create “a perfect match.” The ownership of the restaurant group is shared between Chef Marc Vetri and his business partner Jeff Benjamin. While the chef was dubbed one of Food & Wine’s Ten Best New Chefs, the restaurant was named Food and Wine Magazine’s best pizza restaurant in America.
“URBN and the Vetri Family share the same singular goal, we pride ourselves on bringing the best possible experience to our customers and community. Through this partnership, and the experience URBN has in scaling growth opportunities, the Vetri Family will now be able to focus on what we do best – run restaurants that make people happy,” Partner/Chef Marc Vetri said.
Urban Outfitters will hold its third quarter 2016 earnings conference call later today, at 5 p.m. ET. A total of 28 funds in our database held 6.00% of Urban Outfitters Inc.’s (NASDAQ:URBN) outstanding stock at the end of June.
Lastly, shares of TerraForm Power Inc. (NASDAQ:TERP) have slid by 6.20% in today’s trading session after UBS downgraded the company to “Neutral” from “Buy”, with a $14 per share price target on the stock. Most recently, the yieldco of SunEdison Inc. (NYSE:SUNE), reported $163.3 million in net operating revenues for the third quarter of 2015, compared to $53.6 million in the prior-year period. TerraForm Power booked $2.7 million in net income for the most recent quarter, compared to a net loss of $1.9 million in the same period of last year.
A total of 46 funds in our database held 23.00% of TerraForm Power Inc.’s (NASDAQ:TERP) outstanding stock at the end of June.
Disclosure: None
