Why Mylan, Boeing, Suncor, and More Are Making Headlines

Although the markets ended on a dour note for the week due to a softer-than-expected jobs report, it could have been worse, as the major indexes were each considerably lower at one point in Friday’s session than where they ended the day at.

In this article, we’ll uncover why Suncor Energy Inc. (USA) (NYSE:SU), Mylan NV (NASDAQ:MYL), Boeing Co (NYSE:BA), Alphabet Inc (NASDAQ:GOOG), and Oil-Dri Corporation of America (NYSE:ODC) are making headlines heading into the weekend and check in with the smart money to see what top hedge funds think of each company.

At Insider Monkey, we track around 750 hedge funds and 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. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see the details here).

One integrated producer is trending today due to some conflicting reports. On the one hand, according to Reuters’ sources, Suncor Energy Inc. (USA) (NYSE:SU) is considering selling its Petro-Canada retail gasoline station division. A sale of its 1,500-gas-station segment would potentially bring in around CAD8.4 billion ($6.32 billion), and provide the company with much-needed liquidity. Suncor Energy, on the other hand, has denied that it is considering such a sale at the current time, saying through a spokesperson that “retail is part of our integrated model as it provides a channel of sale for much of our refinery production.” Warren Buffett‘s Berkshire Hathaway cut its stake in Suncor Energy Inc. (USA) (NYSE:SU) by 26% in the second quarter to just over 22.2 million shares on June 30.

Mylan NV (NASDAQ:MYL) shares have surged by 10% in after-hours trading Friday after the company agreed to settle with the Department of Justice and other government agencies concerning the previous classification of EpiPens for the purposes of the Medicaid Drug Rebate program. According to the terms, Mylan will pay $465 million in return for resolution of all potential rebate liability claims by state and federal governments as to whether EpiPen should have been classified as an innovator drug for CMS purposes and subject to a higher rebate formula. In addition, Mylan has also announced that it expects full year 2016 adjusted EPS to be between $4.70 and $4.90, down from the previous range of $4.85-to-$5.15. Mylan remains committed to trying to achieve $6.00 in adjusted EPS in 2018. The number of funds in our system with holdings in Mylan NV (NASDAQ:MYL) fell by seven during the second quarter to 44 at the end of June.

On the next page we’ll find out why Boeing, Alphabet, and Oil-Dri Corporation of America are in the headlines.

Boeing Co (NYSE:BA) is in the spotlight after receiving a huge order from Qatar Airways. According to Boeing, the Middle Eastern airline has ordered $11.7 billion worth of widebody jets and has signed a letter of intent to order up to an additional $6.9 billion worth of narrowbody jets. Although those headline numbers are at list prices (airlines receive discounts from the list price if they buy in bulk), the order is still meaningful even for a company of Boeing’s size. 40 funds that we track were long Boeing Co (NYSE:BA) at the end of June, up by three funds quarter-over-quarter.

Now that it isn’t in the running to buy a certain social media company, Alphabet Inc (NASDAQ:GOOG) seems to be focusing more on its newly-launched Pixel phone. According to Reuters, the internet giant has spent $3.2 million on T.V. advertising in just two days since launching the product. There is more to come, as executives in the ad industry expect Alphabet’s Google division to pony up hundreds of millions of dollars to try and make the Pixel a worthwhile competitor to the iPhone and Galaxy. If the Pixel becomes a smash-hit, Alphabet’s top and bottom-line will jump meaningfully. 126 funds in our database owned Alphabet Inc (NASDAQ:GOOG)’s Class C shares at the end of the second quarter, 16 fewer than did at the end of the first quarter. Meanwhile, 135 funds owned the company’s Class A shares, down from

Oil-Dri Corporation of America (NYSE:ODC) earned $0.72 per share on revenue of $64.91 million for its fiscal year 2016 fourth quarter, nearly identical results to the $0.71 in EPS on $65.52 million in revenue that it pulled in for the same quarter of its prior fiscal year. CEO Daniel Jaffee said:

“While the increase in sales of our Business-to-Business products was relatively small, segment income was extremely strong, increasing 12% in the fourth-quarter and 14% for the full year. High-value products within each of the B2B application groups have played a significant role in improving our overall profit margins… As stated during last quarter’s teleconference, we anticipate maintaining or growing our cash throughout fiscal 2017 and come June, recommending the Board raise the dividend for the 14th consecutive year.”

Five funds tracked by Insider Monkey owned $38.43 million worth of Oil-Dri Corporation of America (NYSE:ODC)’s shares on June 30, which accounted for 15.40% of the float.

Disclosure: None