Why SolarCity, Expedia, Petrobras, and Two Other Stocks Are on the Move Today

It’s been a pretty good Monday on Wall Street. The Dow Jones index is up 180 points, while the S&P 500 and NASDAQ are each 1% higher due to the lower odds of a ‘Brexit’ on Thursday.

Among the stocks on the move today are Barrick Gold Corporation (USA) (NYSE:ABX), SolarCity Corp (NASDAQ:SCTY), Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR), Expedia Inc (NASDAQ:EXPE), and Avis Budget Group Inc. (NASDAQ:CAR). Let’s take a closer look at why traders are buying and selling and see what elite funds think of each stock.

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Barrick Gold Down Due to Lower Gold Prices

Barrick Gold Corporation (USA) (NYSE:ABX) shares are almost 3% lower today due to several polls canvassed over Friday and the weekend that showed more Britons favor remaining in the EU than leaving. If Britain stays in the EU, the odds of an economic recession in Europe are lower and the demand for gold as a safe haven will not be quite as much. Not surprisingly, gold spot prices are off by around half a percent today and are below the 1,300 level. Among the funds tracked by us, 49 funds were long Barrick Gold Corporation (USA) (NYSE:ABX) at the end of the first quarter, up by nine funds from the previous quarter.

SolarCity Higher Despite Analyst Downgrade

Although analysts at Barclays downgraded SolarCity Corp (NASDAQ:SCTY) stock to ‘Underweight’ from ‘Equal Weight’ and lowered their price target to $28 from $35, shares of the solar installer are nevertheless almost 5% higher due to the ‘risk on’ sentiment caused by the latest ‘Brexit’ polls. Many traders have largely brushed off the Barclays analysts’ notes that weaker consumer credit and higher interest rates could hurt SolarCity’s profits, and the traders have instead focused on SolarCity’s long-term potential. The number of funds from our database with holdings in SolarCity Corp (NASDAQ:SCTY) fell by six quarter-over-quarter to 23 at the end of March.

On the next page, we examine Petroleo Brasileiro SA Petrobras, Expedia, and Avis Budget Group.

Petrobras Surges Due to Brent

Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) shares have surged over 5% today on the back of higher Brent prices. Because the probability of a ‘Brexit’ is no longer as great as it once was, the front month Brent futures have rallied 2.6% to cross the pivotal $50 per barrel mark. The higher Brent prices go, the more cash flow Petrobras will have to finance/pay down its debt. Because Petrobras is leveraged, look for the stock to remain volatile in the coming months. Of the 766 elite funds we track, 23 funds owned $224.73 million worth of Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) and accounted for 0.60% of the float on March 31, versus 24 funds and $165.89 million, respectively, on December 31.

Analyst Gives Thumbs Up to Expedia

Expedia Inc (NASDAQ:EXPE) is 4.40% in the green today after analysts at Atlantic Equities upgraded Expedia’s stock to ‘Overweight’ from ‘Neutral’, noting that the company’s diversification should support the multiple and that demand should increase in regards to the company’s non-core OTA assets. The analysts have a $130 price target, giving Expedia 20% upside from current levels. A total of 65 funds from our database were long Expedia Inc (NASDAQ:EXPE) at the end of March, down by eight funds from the previous quarter.

Avis Budget Announces National Hiring Day 

Avis Budget Group Inc. (NASDAQ:CAR)’s stock has advanced by almost 5% amid a ‘risk-on’ sentiment and following a press release in which Avis announced its intentions to hire 1,500 mostly part-time positions during a national day of hiring on June 22. Avis Budget Group currently has around 30,000 employees. Shares of the company are off by 11% year-to-date, but trade at less than 10 times forward earnings. At the end of March, 25 funds followed by Insider Monkey were long Avis Budget Group Inc. (NASDAQ:CAR).

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