Although the Fed has kicked off its pivotal FOMC meeting, Wall Street is relatively calm today as all three indexes are moderately higher. The Dow is up 55 points, the NASDAQ is 0.28% in the green, and the S&P 500 has inched up by 0.27%.
Among the stocks showing more volatility than the broader market today are Puma Biotechnology Inc (NYSE:PBYI), Lennar Corporation (NYSE:LEN), HNI Corp (NYSE:HNI), DTS Inc. (NASDAQ:DTSI), and Tessera Technologies, Inc. (NASDAQ:TSRA). Let’s find out why traders are buying and selling and see how funds from our database are positioned towards each stock, using data from the last round of 13F filings.
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).
Puma Biotechnology Inc (NYSE:PBYI) shares have surged by 13.55% after the company announced that the FDA accepted for review Puma’s NDA seeking the nod of PB272, which is the company’s lead product candidate for the extended adjuvant treatment of patients with early stage HER2-overexpressed/amplified breast cancer who have received prior adjuvant trastuzumab-based therapy. Although the press release didn’t mention a PDUFA date, some traders expect the FDA action date to be in July of next year. The smart money was pretty bullish on Puma in the second quarter. According to our database of around 750 funds, 15 of them owned $391.08 million worth of Puma Biotechnology Inc (NYSE:PBYI)’s stock, which accounted for 40.40% of the float on June 30.
Despite beating analyst earnings estimates for its fiscal third quarter, Lennar Corporation (NYSE:LEN) is 3.5% in the red today as some investors head for the exits. For the period, Lennar earned $1.01 per share, versus Wall Street estimates of $0.90 per share. Revenue was $2.83 billion, up almost 14% year-over-year, and comfortably above the consensus of $2.68 billion. Deliveries rose 7% year-over-year while Lennar’s backlog inched up 12% to 9,253 homes. Given the strong housing market, some in the market may have expected stronger numbers, however (hence the sell-off). John Khoury‘s Long Pond Capital established a new stake of almost 2.1 million shares in the second quarter in Lennar Corporation (NYSE:LEN).
On the next page, we find out why HNI Corp, DTS, and Tessera Technologies are registering moves today.