Why American Airlines, HP, Deutsche Bank and Two Other Stocks are Flying High Today

Markets continued to trade in the green on Tuesday as investors remain optimistic following central banks’ ability to backstop markets in case of any uncertainty.

Among the stocks that are making headlines today are American Airlines Group Inc (NASDAQ:AAL), HP Inc (NYSE:HPQ), Deutsche Bank AG (USA) (NYSE:DB), Copa Holdings, S.A. (NYSE:CPA) and Plains GP Holdings LP (NYSE:PAGP). Let’s find out why these stocks are on the move today and see how hedge funds in our database are positioned towards them.

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American Airlines’ Income To Increase

American Airlines Group Inc (NASDAQ:AAL)’s stock has skyrocketed by more than 8% after the company said its pre-tax income for financial reporting purposes will increase by approximately $200 million in the second half of 2016, by $550 million in 2017 and by $800 million in 2018. The company also announced new credit card agreements with Citi, Barclaycard US on Tuesday.  A total of 61 hedge funds from our database were bullish on American Airlines Group Inc (NASDAQ:AAL) at the end of the first quarter, down from 75 funds a quarter earlier.

HP Surges After Positive PC Market Report

HP Inc (NYSE:HPQ)’s stock has gained more than 3% so far today following International Data Corporation (IDC) Worldwide Quarterly PC Tracker report published on Monday, according to which the worldwide PC sales totaled 62.4 million units in the second quarter of 2016, showing a 4.5% decline year-over-over, much better than the estimated 7.5% decline. With a 20.8% market share, HP was the second most popular PC vendor. The company had a strong quarter and its revenue pushed through the positive territory after years of declines. Sales from the US were the main driving factor for HP in the second quarter.  Overall, 40 hedge funds from our database reported holding stakes in HP as of the end of the first quarter.

On the next page, we will discuss Deutsche Bank, Copa Holdings and Plains GP Holdings.

Deutsche Bank’s Stock Recovers

Deutsche Bank AG (USA) (NYSE:DB) has gained nearly 7% so far today following a massive recovery in the markets worldwide as Brexit fears start to deplete. The German bank faces formidable challenges like drying capital and debt burdens. The stock has lost 20.41% over the last month. Bank of America’s Merrill Lynch has given a “Neutral” rating to Deutsche Bank AG. The firm argues that the bank’s restructuring steps will have “extreme outcomes”. Last month, Deutsche Bank AG (USA) (NYSE:DB) failed to pass Fed’s stress tests for the second year in a row. Only 10 of the funds in our database reported a long position in Deutsche Bank AG (USA) (NYSE:DB) in their latest 13F filings, up from nine registered a quarter earlier.

Copa Holdings’ Passenger Traffic Rises

Shares of Copa Holdings, S.A. (NYSE:CPA) have advanced by 8% after the company said its system-wide passenger traffic (RPM) jumped by 10.7% year over year in June 2016. The Panama-based airliner’s capacity decreased 0.6%.  Copa was also upgraded by Bank of America to “Buy” from “Neutral” in a report issued to the investors on Monday. As of the end of March, 11 hedge funds from our database held stakes in Copa Holdings, S.A. (NYSE:CPA).

Plains GP Holdings’ Agreement With Plains All American Pipeline

Plains GP Holdings LP (NYSE:PAGP)’s stock has jumped more than 12% today after Plains All American Pipeline, L.P. (NYSE:PAA) announced on Monday that it had entered into a definitive with Plains GP Holdings’ controlled affiliate Plains AAP L.P to permanently eliminate Plains All American Pipeline’s incentive distribution and economic rights associated with PAA’s 2% general partner interest in exchange for 245.5 million newly issued PAA common units assumption of all AAP’s outstanding debt worth $593 million. Among the funds in our database, 25 funds were long Plains GP Holdings LP (NYSE:PAGP) at the end of the first quarter. Alec Litowitz and Ross Laser’s Magnetar Capital owns about 3.83 million shares of the company.

Disclosure: None