Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Here’s Why Traders Are Buzzing about These Five Stocks

Page 1 of 2

It’s been a quiet morning on Wall Street so far, with the Dow and S&P coming out flat out of the gate and the NASDAQ Composite index up just 14 points. Among the stocks showing more volatility than the indexes are XenoPort, Inc. (NASDAQ:XNPT), American Capital Ltd. (NASDAQ:ACAS), Ares Capital Corporation (NASDAQ:ARCC), Statoil ASA (ADR) (NYSE:STO), and Seadrill Ltd (NYSE:SDRL). Let’s find out why traders are buying and selling and use the latest round of 13F filings to see what smart money investors think about these stocks.

While there are many metrics that investors can assess in the investment process, the hedge fund sentiment is something that is often overlooked. However, hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor to beat the S&P 500 by around 95 basis points per month (see the details here).

XenoPort Surges 56% on Buyout

It will soon be the end of the road for XenoPort, Inc. (NASDAQ:XNPT) as a public corporation after the company recently agreed to sell itself to Arbor Pharmaceuticals for $7.03 in cash per share or around $467 million. Arbor is a specialty pharmaceutical company focused on the cardiovascular, hospital and pediatric markets. Arbor has over 600 workers, including 500 sales people promoting its drugs and devices to doctors, hospitals and other healthcare workers. Arbor’s acquisition of XenoPort should close in the third quarter of 2016. Out of the 766 total funds in Insider Monkey’s database, 14 funds owned over 44% of XenoPort, Inc. (NASDAQ:XNPT)’s shares at the end of March.

Follow Xenoport Inc (NASDAQ:XNPT)
Trade (NASDAQ:XNPT) Now!

An Acquisition in Finance Sector

American Capital Ltd. (NASDAQ:ACAS) is up by 1.6% and Ares Capital Corporation (NASDAQ:ARCC) is 2.8% in the red after Ares Capital agreed to buy American Capital for $3.43 billion in cash and stock, or roughly $14.95 per share using last week’s closing prices. The boards of both companies have unanimously approved the transaction. For Ares Capital, the deal is expected to be immediately accretive to EPS, accretive to net asset value between the first and second full years after closing, and accelerate growth of Ares Capital’s Senior Direct Lending Program joint venture. In a separate deal, American Capital also announced that it is selling American Capital Mortgage Management, LLC to American Capital Agency Corp for $562 million or $2.45 per fully diluted share. A total of 33 funds held shares of American Capital Ltd. (NASDAQ:ACAS) and 19 investors were long Ares Capital Corporation (NASDAQ:ARCC) at the end of March.

Follow American Capital Ltd (NASDAQ:ACAS)
Trade (NASDAQ:ACAS) Now!
Follow Ares Capital Corp (NASDAQ:ARCC)
Trade (NASDAQ:ARCC) Now!

On the next page, we examine Statoil ASA (ADR) and Seadrill Ltd.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!