Here’s Why These Five Stocks Are on the Move Today

M&A in the Server/Semiconductor Industry

Cavium Inc (NASDAQ:CAVM) has agreed to acquire QLogic Corporation (NASDAQ:QLGC) for $11 per share in cash and 0.098 shares of Cavium common stock for each share of QLogic common stock, for a net value of around $15.50 per share based on the weighted average trading price of Cavium for the three trading days beginning June 10. The transaction has an enterprise value of $1 billion and should produce annualized cost synergies of $45 million by the end of 2017. Management believes the merger will be $0.60 to $0.70 accretive to Cavium’s 2017 adjusted EPS. Cavium shares are down by 7% and QLogic shares have gained around 12% on the back of the news. At the end of March, 16 funds from our database were long Cavium Inc (NASDAQ:CAVM) and 23 funds had stake in QLogic Corporation (NASDAQ:QLGC), according to the latest round of 13F filings.

Nu Skin Gets Strategic Investment

Nu Skin Enterprises, Inc. (NYSE:NUS) shares are in the green this morning after Ping An Securities and several other investors affiliated with ZQ Capital Limited agreed to make a $210 million strategic investment in the company by buying 4.75%, four-year convertible senior notes with an initial conversion price of $46.50 per share. Nu Skin will use the proceeds to buy back stock and to invest in its Chinese operations. The company also said it anticipates its second quarter revenue to be in the high end or slightly above the previous guidance of $560 million to $580 million. Among the funds we track, 15 funds owned $107.92 million worth of Nu Skin Enterprises, Inc. (NYSE:NUS)’s stock, which accounted for 5.10% of the float on March 31, versus 19 funds and $111.81 million, respectively, a quarter earlier.

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