Why ConAgra Foods, Hertz Global, Shire PLC and Two Other Stocks Are on the Move Today

The US stock indexes are slightly in the green on Thursday as investors remain cautious following Brexit aftermath and a Labor Department report, which said jobless claims rose by 10,000 to 268,000 in late June.

Among the stocks on investors’ radar today are ConAgra Foods Inc (NYSE:CAG), Cepheid (NASDAQ:CPHD), Shire PLC (ADR) (NASDAQ:SHPG), Constellation Brands, Inc. (NYSE:STZ) and Hertz Global Holdings Inc (NYSE:HTZ). Let’s take a detailed look at the recent activity around these stocks and see how hedge funds in our database are positioned towards them.

An everyday investor doesn’t have the same resources and capabilities to analyze different publicly-traded companies as hedge funds do. This is why it is a good idea to see what stocks hedge funds like the most and try to imitate some of their bullish moves in an attempt to reap market-beating returns. At Insider Monkey, we follow the activity of several hundred of the best-performing hedge funds as part of our strategy. We analyze their 13F filings and use the data to see what stocks they are collectively bullish on. Through extensive research we have determined that the best approach to outperform the broader indices is to follow hedge funds into their top small-cap ideas. In our backtests, a portfolio of the 15 most popular small-cap stocks generated monthly alpha of 81 basis points, versus 0.7 percentage points posted by hedge funds’ top large- and mega-cap picks (see more details here).

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ConAgra Foods Misses Revenue Estimates

Shares of ConAgra Foods Inc (NYSE:CAG) plunged after the bell but have recovered slightly after the company reported fiscal fourth quarter earnings of $0.52 per share, which was in line with analysts estimates, but the $2.83 billion revenue missed the consensus expectations of $2.89 billion. In a statement, CEO of ConAgra Foods’ CEO Sean Connolly said that 2016 is a “tremendous” year of progress for the company as it revamps its portfolio, strengthen the balance sheet, and transforms its culture. Mr. Connolly added that all segments of the company are in a sound position as it prepares to split into two separate entities later this year. ConAgra Foods is going to bifurcate into separate businesses, Conagra Brands and Lamb Weston, in fall.  Jason Karp’s Tourbillon Capital Partners is one of 34 funds tracked by us that reported stakes in Post Holdings Inc (NYSE:POST) as of the end of March

FDA Approves Cepheid’s Test

Cepheid (NASDAQ:CPHD) is in the spotlight today after the U.S. Food and Drug Administration (FDA) approved the company’s test, Xpert Carba-R Assay, to detect genetic markers of bacteria that are resistant to carbapenem antibiotics, a common drug used to treat serious infections. In a statement, Cepheid’s Chief Medical Officer David Persing said that Xpert Carba-R test produces accurate results in just 48 minutes, whereas traditional tests to detect high-risk patients for colonization status take around three to five days. A total of 13 hedge funds from our database owned approximately $99.3 million worth of Cepheid (NASDAQ:CPHD)’s stock at the end of the first quarter. Dmitry Balyasny’s Balyasny Asset Management owns 631,376 shares of the company, according to its latest 13F.

Move to the next page to see why Shire Plc, Constellation Brands, and Hertz Global are making headlines today.

Shire’s Drug Meets Primary Endpoint

Shares of Shire PLC (ADR) (NASDAQ:SHPG) have gained approximately 1.8% since the opening bell after the company announced on Wednesday evening that a study to test its experimental drug, SHP465, for the treatment of Adult Attention Deficit Hyperactivity Disorder (ADHD) had met its primary endpoint. The Dublin, Ireland-based biotech company said both doses of SHP465 were better than placebo in treating patients with the disorder. Shire hopes to get the FDA approval for the drug in the second half of 2017. Among the funds tracked by Insider Monkey, 49 funds reported long positions in Shire PLC (ADR) (NASDAQ:SHPG) as of the end of the first quarter. Among them, John Paulson’s Paulson & Co holds 7.0 million shares of the company.

Constellation Brands Beats Estimates

Constellation Brands, Inc. (NYSE:STZ)’s stock is up by over 2% after the company reported its fiscal first quarter financial results, which topped analysts’ estimations. The New York-headquartered beverage company reported EPS of $1.55, better than estimates of $1.52, while sales in the quarter skyrocketed by 15% on the year to $1.87 billion, above the consensus estimates of $1.83 billion. For fiscal 2017, the company expects EPS of $6.05 to $6.35. Constellation Brands, Inc. (NYSE:STZ) is quite popular among the investors tracked tracked by us, as 71 funds owned shares of Constellation Brands at the end of the first quarter, versus 67 funds a quarter earlier.

Hertz Global Strikes Agreements with Uber and Lyft

Shares of Hertz Global Holdings Inc (NYSE:HTZ)  are trading higher today after the company said it had reached agreements with Uber and Lyft to provide them drivers with cars for rent. Hertz Global’s cars could be used both for personal and business use, according to the agreement. In a statement, John Tague, CEO of Hertz Global, said that the agreement is “largely complementary” to Hertz’ car business.  Carl Icahn’s Icahn Capital LP is one of the 47 funds that reported stakes in Hertz Global Holdings Inc (NYSE:HTZ) as of the end of the first quarter. It owns more than 63.7 million shares of the company.

Disclosure: none