|Bid||123.00 x 1100|
|Ask||123.58 x 800|
|Day's Range||122.82 - 127.79|
|52 Week Range||100.48 - 144.40|
|Beta (3Y Monthly)||1.32|
|PE Ratio (TTM)||20.11|
|Forward Dividend & Yield||2.94 (2.30%)|
|1y Target Est||N/A|
Hedge funds have just released their portfolio trades for the second quarter. And now is the time to evaluate these trades for valuable investing insights. Here we focus on one particular aspect of hedge fund activity- new stock additions. That’s using an August 19 report from RBC Capital which analyzes the 2Q19 13f forms of 363 major hedge funds with significant stakes in US equities (single stocks). The firm used this data to pinpoint the top stocks where hedge fund ownership rose the most during 2Q19, in terms of the net number of funds that added new positions.Three names fall in Health Care (including the 1 name- Allergan (AGN)). Another three names fall in Industrials, notes the firm. But there is one key stock worth bearing in mind: “Note that UBER (UBER) does not qualify for this screen as it does not fall in the S&P 500 and it began trading mid way through the 2nd quarter. It was owned by 51 hedge funds at the end of 2Q19” points out the firm.With that being said, let’s take a closer look at five top new stocks hedge funds are making a bet on right now: 1\. Align Technology (ALGN)Align Technology is leading an orthodontics revolution. The company invented the Invisalign- a clear teeth aligner system- that can replace traditional braces. In Q2, 14 new funds bought Align shares- bringing the total value of ALGN shares owned by hedge funds to $1,805 million. Unfortunately however the stock has declined in both Q2 and Q3. Despite strong Q2 earnings results, the company’s guidance left investors disappointed. "Given the uncertainty in China," CEO Joe Hogan commented, "our outlook for the third quarter reflects a more cautious view for growth in the Asia Pacific region."Don’t be disheartened, says Piper Jaffray’s Matthew O’Brien. This five-star analyst has just reiterated his ALGN buy rating with a $240 price target (37% upside potential). Align "has much better products that will win in the marketplace" he tells investors. O’Brien believes that an accelerated stock repurchase plan of $200 million demonstrates confidence in Align’s outlook.Overall, ALGN shows a Moderate Buy analyst consensus, with an average price target of $259. Interestingly if we look at only the best-performing analysts, this consensus shifts to Strong Buy. 2\. Qualcomm (QCOM)Chip titan Qualcomm is an intriguing hedge fund pick. In the second quarter, 20 more funds owned QCOM stock vs the first quarter. As a result, 15% of the funds covered in RBC Capital’s study now own Qualcomm. Their total holding works out at $1,682 million.Despite numerous problems- most obviously the May 21 antitrust ruling - some analysts do see a bright future ahead. That’s thanks to the company’s prime 5G position. “We believe Qualcomm's bull case is unchanged, with global 5G roll outs expected to increase both royalty income and demand for semiconductors beginning in 2020,” Merrill Lynch’s Tal Liani said recently. “Press reports suggest that all of Apple's 2020 iPhones will contain Qualcomm's 5G chipset, which could drive a 5G cycle across the entire industry.” The analyst has just reiterated his QCOM buy rating and $100 price target (36% upside potential). No doubt hedge funds are also relieved to hear that Qualcomm has just won a critical partial stay from The Ninth Circuit Court of Appeals. The company won’t have to grant patent licenses to rivals and can still require patent licenses for customers to buy chips while its appeal is ongoing. According to Qualcomm general counsel Don Rosenberg, the company still believes “the district court decision will be overturned once the merits of our appeal have been considered.” In total, QCOM scores a Moderate Buy Street consensus with a $78 average price target. 3\. Hologic (HOLX)Medical tech stock Hologic focuses primarily on women’s health and beauty; it sells medical devices for surgery and medical imaging. During Q2, 14 funds initiated positions in HOLX. RBC Capital reveals that funds now own a total of $748 million in Hologic stock. Of course, Hologic has a history when it comes to hedge funds. Back in 2013, hedge fund activist Carl Icahn swooped in with a 12.63% stake. Three years later he cashed in on what proved to be a successful intervention. “Yesterday our designees resigned from the [Hologic] board because the situation no longer calls for activism,” Icahn wrote on Twitter at the time. “Hologic is the quintessential example of activism at its best. We commend [Hologic chief executive] Steve MacMillan for a job well done.”Looking ahead, analysts are divided over HOLX’s outlook. Five analysts currently rate the stock a buy, while four analysts are staying on the sidelines. “Hologic is gradually executing over the course of this year as its breast health and molecular diagnostics businesses pace its growth, but are offset by slower growth or declining segments” states Canaccord Genuity’s Mark Massaro. This Top 50 analyst reiterated his hold rating on Hologic on August 1, but ramped up the price target from $49 to $52 (8% upside potential). “Near mid-single-digit growth and effective capital allocation (buybacks and tuck-in deals) are warming us up to the stock as HOLX delivered a 2% top-line beat, 2 cent bottom-line beat, and raised its FY top- and bottom-line guide” he explained. 4\. United Technologies Corp (UTX)Like the previous two stocks, United Technologies Corp saw the addition of 14 new funds in Q2. This aerospace and defense stock now features in 16% of the portfolios scanned by RBC Capital. And the total hedge fund holding is valued at $4,552 million.Encouragingly, analysts are positive on UTX right now. The stock boasts a ‘Strong Buy’ consensus, and a price target that indicates 23% upside from current levels. Indeed, both Vertical Research and Seaport Global upgraded United Technologies from Hold to Buy in the last couple of months.The analysts made their calls after the news of a proposed $120 billion merger between UTX and Raytheon (RTN) sent shares plummeting. The deal, which is set to close in the first half of the year, is currently undergoing an investigated by the U.S. Department of Justice’s antitrust division. According to Vertical Research analyst Jeffrey Sprague the stock’s weakness created an attractive buying opportunity.More recently, five-star Cowen & Co analyst Cai Rumohr reiterated his UTX buy rating and $150 price target. Turning the cash flow corner, enthused Rumohr following Q2 earnings. “Q2's EPS/cash flow beat suggests cash consuming build in new aerospace programs is starting to reverse with a likely multi-year ramp in standalone CFPS [cash flow per share]. And the proposed RTN merger would accelerate cash deployment potential” summed up the analyst. 5\. Roper Technologies (ROP) Roper Technologies is a diversified industrial company that produces engineered products for global niche markets. That includes everything from creative software technologies for visual effects and 3D content, to safety valves and radiotherapy solutions. Thirteen hedge funds started new positions in Roper during Q2, says RBC Capital.Indeed, the firm’s own Deane Dray shares this bullish outlook on Roper stock. He recently reiterated his buy rating while bumping up the price target from $391 to $393 (13% upside potential). “Outperform-rated Roper’s modest 2Q19 beat featured its typical high quality of earnings” Dray wrote post-earnings. However, the analyst added that there was a pang of disappointment with the disclosure that expected 2H19 slowing in short- cycle industrial businesses (8% of revenues) could pose a -10c headwind. Ultimately, though, Roper remains “indisputably one of the highest-quality names within the Multi-Industry sector.” It leads the pack in EBIT margin and free cash flow conversion thanks to its portfolio of low- capital-intensity and profitable SaaS and network businesses, he tells investors. Currently five analysts rate ROP a buy, with only 1 analyst calling the stock a hold- giving it a ‘Strong Buy’ consensus. Meanwhile the average analyst price target stands at $399 suggesting shares can climb 15% in the coming months. Find analysts' favorite stocks with the Top Analysts' Stocks tool
When Raytheon examined customer demand within its Space and Airborne Systems business unit, headquartered in McKinney, company leadership realized their current capacity wasn't going to be enough. The new plant, which doesn't have a name yet, will be the first new building on the McKinney campus since 2001, said Roy Azevedo, president of SAS. "We see the community as being committed to Raytheon Company and working with Raytheon," said Azevedo, adding that the sentiment "goes both ways." The McKinney Economic Development Corporation board of directors approved an incentive package for Raytheon's expansion, said Peter Tokar, president and chief executive of the MEDC, adding the two sides are finalizing negotiations.
United Technologies (UTX) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Honeywell's (HON) suite of solutions uses IoT connectivity, interoperable systems and data sharing, as well as adaptive workflows to convert inputs and information into actionable insights.
During its latest 13F filings, Bill Ackman’s Pershing Square Holdings revealed its new stake in Warren Buffett’s Berkshire Hathaway.
General Electric is making major changes after a brutal couple of years. Here is what the fundamentals and technical analysis say about buying GE stock now.
The antitrust division of the U. S. Department of Justice has sent a request for additional information to both United Technologies and Raytheon regarding their planned $120 billion merger, which is expected to close in the first half of next year.
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does United Technologies (UTX) have what it takes? Let's find out.
Top hedge funds bought software and IPO stocks like Twilio and Pinterest, new 13f filings show. Jana Partners, focused on social impact investing, dumped jewelry, mineral firms.
Bill Ackman’s Pershing Square holdings snapped up a huge stake in Warren Buffett’s Berkshire Hathaway (BRK-B), according to a 13-F regulatory filing. ‘Rough patch’ Ackman explained that like Buffett, the mission at Pershing Square is to have a permanent capital structure.
Daniel Loeb’s Third Point has reduced its stake in United Technologies. As per a regulatory filing, the fund sold 480,000 UTX shares in the second quarter.
The electronics retailer jumped after the Trump administration announced that it would postpone tariffs on certain Chinese-made products including laptops and cellphones until mid-December. The tariffs were first set to start in the beginning of September. Delaying them means that American consumers won’t feel the tariffs’ potential impact when they shop for back-to-school and the holidays.
EVP, Operations & Strategy of United Technologies Corp (30-Year Financial, Insider Trades) Michael R Dumais (insider trades) sold 4,329 shares of UTX on 08/09/2019 at an average price of $130.98 a share. Continue reading...
Hedge fund Third Point LLC said on Tuesday that it recently cut its investment in United Technologies Corp , becoming the second activist hedge fund to sell shares after the company announced a merger with Raytheon Co. that the funds said they would not support. The New York-based firm sold 480,000 shares of United Technologies stock during the second quarter, cutting its holding by 7 percent to 6 million shares, according to a regulatory filing made on Tuesday. In June, Third Point founder Daniel Loeb told the company its plan to merge with Raytheon was a "baffling change" in strategy.
Update from portfolio managers Christopher Davis, Peter J. Sackmann, CFA and Creston A. King III, CFA Continue reading...
General Electric's (GE) 9EMax gas turbine upgrade solution is likely to make SWM's cogeneration plant more efficient in producing thermal energy in Munich.
Home to a group of cyclical stocks, plenty of which have export exposure, the iShares U.S. Aerospace & Defense ETF (Cboe: ITA) is, perhaps not surprisingly, lower by 4.54% over the past week as markets ...