Here’s Why Amsurg, Relypsa, FireEye, and Two More Stocks Are Trending on Thursday

All three index futures are in the red this morning as traders prepare for a potential ‘Brexit’ in the coming weeks. Although British voters could decide to remain in the EU, recent polls have pointed to the opposite outcome. If the U.K. leaves, financial markets could be more volatile than before. Among the stocks trending on Thursday morning are Amsurg Corp (NASDAQ:AMSG), Envision Healthcare Holdings Inc (NYSE:EVHC), Relypsa Inc (NASDAQ:RLYP), Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP), and FireEye Inc (NASDAQ:FEYE). Let’s take a closer look at the latest developments surrounding these stocks and see what investors from our database think about them.

We believe that imitating hedge funds and other large institutional investors can be helpful in identifying stocks capable of outperforming the broader market. Through extensive research that covered portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see the details here).

A Big Merger in the Healthcare Sector

Amsurg Corp (NASDAQ:AMSG) and Envision Healthcare Holdings Inc (NYSE:EVHC) are tying the knot in an all-stock deal to from a combined organization with a pro-forma market cap of $10 billion and an enterprise value of $15 billion. After the deal is complete, Envision shareholders will own 53% of the combined company while Amsurg shareholders will own 47%. Management of both companies anticipate the deal to be accretive to adjusted earnings per share in 2017 and to potentially yield synergies of $100 million. The combined company will also have a strong balance sheet with anticipated net debt to adjusted EBITDA of 4.2x. Although the deal is supposed to be accretive, traders don’t seem to be big fans of the deal, with Envision shares down by around 7% in the pre-market, although Amusrg’s stock has inched up. Among the funds we track, 27 funds owned shares of Amsurg Corp (NASDAQ:AMSG) while 32 funds were long Envision Healthcare Holdings Inc (NYSE:EVHC) at the end of March.

On the next page, we examine Relypsa , Tonix Pharmaceuticals Holding Corp, and FireEye Inc.
Relypsa Monthly Prescriptions Jump 

Relypsa Inc (NASDAQ:RLYP) shares are around 4% higher after the company reported the number of retail prescriptions for Veltassa rose by 32.5% sequentially to 1,230. Veltassa is Relypsa’s main product and represents a treatment for hyperkalemia. Some traders expect demand for the drug to grow considerably over the next year given that the FDA didn’t approve ZS-9, a competitor’s hyperkalemia drug candidate. A total of 14 investors tracked by us were long Relypsa Inc (NASDAQ:RLYP) at the end of March, down by 7 from the previous quarter.

Offering at Tonix

Nanocap Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) is 20% in the red in pre-market after the company announced its intention to offer shares of common stock in an underwritten public offering. Although the pricing of the offering hasn’t been released, Tonix has said it plans to use the net proceeds to finance the development of cyclobenzaprine HCl sublingual tablets for the management of fibromyalgia, advance the development of TNX-102 SL for the potential treatment of post traumatic stress disorder, and for general corporate purposes. Among the funds we follow, Mark Kingdon’s Kingdon Capital owned over 1.5 million shares of Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) at the end of March.

FireEye Buzzing on Bloomberg Article

FireEye Inc (NASDAQ:FEYE) shares are in the green this morning after Bloomberg published an article stating that FireEye had rebuffed several takeover proposals made by multiple parties earlier this year. FireEye’s management turned down the proposals because the offers were below the company’s expectations of $30 per share or more. One of the potential suitors of FireEye was Symantec Corporation (NASDAQ:SYMC), which recently bought Blue Coat Systems instead. FireEye is said to no longer be looking to sell itself anymore. A total of 28 funds in our database were long FireEye Inc (NASDAQ:FEYE) at the end of the first quarter, up by three funds from the previous quarter.

Disclosure: none