Why EverBank, Celgene, Centene, PACCAR, and Wolverine World Wide Are Trending Today

U.S. stocks are trading down on Tuesday, driven by a series of weak earnings reports and anticipation (or is it dread?) surrounding both the results of the FOMC’s meeting that started today and earnings from Apple Inc. (NASDAQ:AAPL) this afternoon. Among the stocks moving on relevant news today are EverBank Financial Corp (NYSE:EVER), Wolverine World Wide, Inc. (NYSE:WWW), Centene Corp (NYSE:CNC), Celgene Corporation (NASDAQ:CELG), and PACCAR Inc (NASDAQ:PCAR). Let’s take a look into the events driving interest in these stocks today and see what the hedge funds in our database think about the companies in question.

At Insider Monkey, we track around 765 hedge funds and other institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year (see more details about our small-cap strategy).

EverBank Surges on Buyout Talks

Let’s start with EverBank Financial Corp (NYSE:EVER), which has gained more than 4.75% since the market opened this morning even though it missed both top- and bottom-line expectations with its second quarter results. Before the bell rang, the company reported EPS of $0.32 on revenue of $196.61 million, falling short of the Street’s consensus estimates by $0.04 and $39.54 million, respectively. However, management said it was in advanced talks with an undisclosed bidder to sell the company for $19.50 per share in cash, or a total of $2.5 billion.

As of the end of the first quarter, 11 funds among those we track held long positions in EverBank Financial Corp (NYSE:EVER), owning more than 10% of its total shares outstanding. The largest position was that of Edward Gilhuly and Scott Stuart’s Sageview Capital, which declared ownership of 10.31 million shares as of March 31.

Wolverine World Wide Beats Q2 Expectations

Next up is Wolverine World Wide, Inc. (NYSE:WWW), which is up by more than 7.5% in the early afternoon, driven by a top- and bottom-line beat reported before the morning bell rang. Second quarter EPS of $0.25 and revenue of $583.7 million came in $0.02 and $4.8 million above expectations respectively. In addition, management reiterated its full year guidance for revenue in the $2.475 billion-to-$2.575 billion range, diluted EPS of $1.16-to-$1.26, and adjusted EPS of $1.30-to-$1.40.

17 funds in our database were long Wolverine World Wide, Inc. (NYSE:WWW) at the end of March. Among them was Robert Joseph Caruso’s Select Equity Group, which almost doubled its holding during the first quarter, to 2.84 million shares.

Head to the next page to check out the latest news concerning the other three stocks.

Centene Tumbles Despite Double-Beat 

Shares of Centene Corp (NYSE:CNC) are trading down by roughly 10% on Tuesday, even though its second quarter results managed to beat expectations. EPS of $1.29 came in $0.20 ahead of the Street’s consensus estimate, while revenue of $10.9 billion beat estimates by $110 million. What seemed to be pushing the stock down were CEO Michael Neidorff’s comments.

“If there’s any one thing that Centene is recognized for is that it has not participated and will not participate in bidding and auctions. So anything that indicates that would have to be considered a rumor,” Mr. Niedorff stated, shooting down reports that the company had bid on Aetna Inc (NYSE:AET)’s assets.

Ownership of Centene Corp (NYSE:CNC) among the funds we track nearly doubled over the first quarter, to 47 from 27. Among the newcomers was Harris Associates, which acquired almost 2.00 million shares of the company between January and March.

Celgene Abandons Revlimid For DLBCL

Also down on Tuesday is Celgene Corporation (NASDAQ:CELG), which has lost about 1.3% since the market opened. On late Monday, the company announced that even though its blockbuster agent, Revlimid, had hit its primary endpoint, it had not managed to improve overall survival in patients with diffuse large B-cell lymphoma (DLBCL) when used as maintenance therapy. Consequently, management said on early Tuesday that it would no longer pursue its plans to expand the label of the drug to include this form of lymphoma.

With a stake containing around 3.77 million shares, Samuel Isaly’s OrbiMed Advisors was the largest shareholder of Celgene Corporation (NASDAQ:CELG) among the 61 funds in our database that held long positions in the company at the end of March.

PACCAR Helped By Earnings Beat

Finally, there’s PACCAR Inc (NASDAQ:PCAR), which has surged by more than 3.5% in Tuesday trading, driven by its earnings report release this morning. Even though revenue of $4.12 billion, down by 14% year-over-year, missed analysts’ expectations by $50 million, EPS of $1.06 came in $0.04 ahead of estimates. This, combined with increased guidance for this year’s industry sales in the above-16-ton truck market in Europe seemed to be enough for investors. 26 funds among in our system held equity stakes in PACCAR Inc (NASDAQ:PCAR) at the end of the first quarter.

Disclosure: Javier Hasse holds no interest in any of the securities or entities mentioned in this article.