Why Are These Stocks in Spotlight on Monday?

Spirit Airlines Gets Boost From Analyst

Although crude prices may be nearing the $50 per barrel level again, Spirit Airlines Incorporated (NASDAQ:SAVE) shares are 4.7% higher this morning, courtesy of an analyst upgrade. Analysts at Credit Suisse have upgraded the stock to ‘Outperform’ from ‘Neutral’ and raised their price target to $55 per share from $44 in anticipation of stronger second-half demand. Of the 766 funds we track, 28 funds owned $262.35 million worth of Spirit Airlines Incorporated (NASDAQ:SAVE), which accounted for 7.60% of the float on March 31, versus 35 funds and $416.59 million, respectively, on December 31.

Kellogg Ventures For More Growth

Kellogg Company (NYSE:K) is in the spotlight today after the company announced it had established a venture capital fund to support growth. The fund, eighteen94, intends to invest around $100 million and will take minority stakes in companies pioneering new ingredients, foods, packaging, and enabling technology. The fund will be managed by 10-year executive at Kellogg, Simon Burton, and will hopefully increase the company’s growth rate going forward. At the end of March, 28 funds from our database were long Kellogg Company (NYSE:K), up by nine from the previous quarter.

Chesapeake Rises Despite Analyst Downgrade

Although analysts at Jefferies have resumed an ‘Underperform’ rating with a $3 price target, citing future potential shareholder dilution, Chesapeake Energy Corporation (NYSE:CHK) is more than 5% in the green today mostly due to a rally in WTI prices. Because the prospect of a ‘Brexit’ is more remote, the probability that an economic recession in Europe that reduces crude demand is lower and WTI prices are nearing the critical $50 per barrel level again. If WTI prices continue their growth, shareholders of Chesapeake will likely suffer less dilution. Among the funds we track, 31 funds were long Chesapeake Energy Corporation (NYSE:CHK) at the end of the first quarter.

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