Why Dow Chemical, LendingClub, CBRE Group and Two Other Stocks Are on the Move Today

Markets signaled a bounce back before the bell on Tuesday as investors become hopeful that policy makers will move to support financial markets. Analysts are also keeping an eye on GDP growth data, slated to be announced later today.

Meanwhile, some stocks are in the spotlight today, including CBRE Group Inc (NYSE:CBG), Whirlpool Corporation (NYSE:WHR), Dow Chemical Co (NYSE:DOW), LendingClub Corp (NYSE:LC), and FactSet Research Systems Inc. (NYSE:FDS). Let’s unravel the reasons behind the movement in these stocks today and also take a look at what elite funds think about these companies.

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).

CBRE Group Highlights Role of the UK in its Business

CBRE Group Inc (NYSE:CBG) is in the news on Tuesday after the company released a statement, highlighting the United Kingdom’s contributions to its global normalized EBITDA. The Los Angeles-based real estate company said that in 2015, the UK accounted for approximately 10% of its global normalized EBITDA. Jeffrey Ubben’s ValueAct Capital is a notable hedge fund from our system having stakes in CBRE Group Inc (NYSE:CBG), as of the end of the first quarter. Overall, 30 hedge funds tracked by us held shares of CBRE Group at the end of March.

Whirlpool Corporation Comments on Post-Brexit Situation

Shares of Whirlpool Corporation (NYSE:WHR)’s stock has gained over 3% after the company released a statement regarding post-Brexit business prospects and uncertainties. The Michigan based home appliance company said that the UK accounted for about 5% of its global revenues in fiscal 2015, and most of the products sold in the country were produced in other countries of the European Union. Whirlpool Corporation’s CEO Jeff M. Fettig thinks that Brexit has created a number of uncertainties, which will “take some time” to abate. Mr. Fettig added that the UK is an important country and Whirlpool will continue producing innovative products for the UK and countries of the EU. At the end of the first quarter, 38 funds from our database amassed approximately $2 billion worth Whirlpool Corporation (NYSE:WHR)’s stock. Edgar Wachenheim’s Greenhaven Associates owns about 2.6 million shares of the company.

Move to the next page where we discuss Dow Chemical, LendingClub and FactSet.

Dow Chemical To Cut 2,500 Jobs

Investors are watching Dow Chemical Co (NYSE:DOW) today after the company announced to slash 2,500 jobs globally, around 4% of its total workforce. The step comes as part of the company’s restructuring plan following its acquisition of full ownership of Dow Corning. Dow Chemical’s CEO Andrew N. Liveris said that the company is effectively moving towards integrating Dow Corning and delivering synergies to increase growth of the company and return for the shareholders. The chemical company now expects to save $400 million in annual costs, up from a previous estimate of $300 million. Dan Loeb’s Third Point held 25 billion shares of Dow Chemical Co (NYSE:DOW) at the end of March.

LendingClub Gets New CEO and Board Chairman

LendingClub Corp (NYSE:LC)’s stock has advanced by nearly 5% after it announced the appointment of Scott Sanborn the company’s new CEO and President. Also, Hans Morris, who had assumed the temporary role of Executive Chairman, has been named as the new Chairman of the Board of Directors. Mr. Morris said that Scott and his team has the capability to lead the company through the current “turbulent time.” Scott Sanborn said that he and his team is “working closely” to rebuild investors’ confidence. Troubles for LendingClub started when its CEO resigned in May following an internal investigation regarding $22 million issued in an improper loan sale. Among the funds that we track, 18 held shares of LendingClub Corp (NYSE:LC) at the end of March. Alexander Tamas’ VY Capital reported holding 4.4 million shares of the company as of the end of March.

FactSet Research Beats Estimates

FactSet Research Systems Inc. (NYSE:FDS) is moving today after it reported better than expected fiscal third quarter earnings on Tuesday. The Connecticut-based multinational financial data and software company posted EPS of $1.62, above the estimated EPS of $1.61. Revenue came in at $287.5 million, better than the expected $287.66 million. For the fourth quarter of 2016, Factset sees its EPS between $1.68 and $1.72. The company also announced the appointment of two new directors, Sheila B. Jordan and Malcolm Frank. A total of 16 hedge funds tracked by us were long FactSet Research Systems Inc. (NYSE:FDS) at the end of the first quarter, having amassed $226.2 million worth of stock.

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