The spotlight now turns to Zogenix, Inc. (NASDAQ:ZGNX), Tetralogic Tetralogic Pharmaceuticals Corp (NASDAQ:TLOG), WPCS International Incorporated (NASDAQ:WPCS) and Rock Creek Pharmaceuticals, Inc. (NASDAQ:RCPI) as the four stocks appear to have massive gains today, July 1.
In the case of Zogenix, Inc. (NASDAQ:ZGNX), however, the stock may appear to have made a colossal jump of over 700% from its closing price of $1.68 per share yesterday but this is because of a 1-for-8 reverse stock split. Factoring in the reverse split which was approved by the company’s Board of Directors on June 19 and is effective today, the stock only gained 2.5% from its price yesterday. From January 2 to June 30, the stock gained 22.63%. In the one-year period leading to June 30, the stock has lost 16.83% in value.
Tetralogic Tetralogic Pharmaceuticals Corp (NASDAQ:TLOG), on the other hand, went up as high as $3.60 per share, 53.85% from its $2.34 per share closing price yesterday, as the market reacts positively to the firm announcing that three out of nine patients who entered a Phase 2A study of birinapant, in combination with azacitidine, in the treatment of myelodysplastic syndromes, a certain group of cancers, have shown complete responses. The stock is still up over 37% as of time of writing.
WPCS International Incorporated (NASDAQ:WPCS) has traded as high as $2.90 per share, up 88.31% from its closing price of $1.54 yesterday, on the back of an announcement that it has been awarded $3.6 million in new contracts in the first two months of its fiscal year 2016. The stock is still up over 65% as of time of writing.
Meanwhile, Rock Creek Pharmaceuticals, Inc. (NASDAQ:RCPI) surged as high as $2.01 per share, up 32.24% from its closing price of $1.52 per share yesterday, after the firm revealed that in a human proof of principle study with anatabine citrate, its lead compound, a single oral dose of the compound was found to be able to significantly inhibit the activation of inflammatory proteins in the blood of human subjects. The stock is still up 13.82%.
Did hedge funds predict these massive moves today? In the case of Zogenix and Tetralogic Pharmaceuticals, it appears so. Both companies experienced a jump in interest by March 31 among the hedge funds tracked by Insider Monkey.
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In terms of insider sentiment which Insider Monkey also uses to tell whether a stock is a good stock to buy at the moment, Tetralogic had two purchases in March by President and CEO Kevin Buchi and CFO Pete Meyers who bought 5,000 shares each. Zogenix Director Roger Hawley also bought 190,000 shares in total this year in transactions made in March 16 (140,000 shares) and June 16 (50,000 shares. Keeping this in mind, we’re going to view the fresh action regarding Zogenix, Inc. (NASDAQ:ZGNX) and Tetralogic Pharmaceuticals Corp (NASDAQ:TLOG).
What does the smart money think about Zogenix, Inc. (NASDAQ:ZGNX) and Rock Creek Pharmaceuticals, Inc. (NASDAQ:RCPI)?
By March 31, a total of 14 of the hedge funds tracked by Insider Monkey were long in Zogenix, a change of 27% from one quarter earlier. Total value of holdings also increased 25.84% from $31.87 million in the fourth quarter to $40.11 million by the end of March. The stock went up 5.11% from January 2 to April 1. Of the funds tracked by Insider Monkey, Kevin Kotler‘s Broadfin Capital had the biggest position in Zogenix, Inc. (NASDAQ:ZGNX), worth close to $14.7 million in 10,737,645 shares, corresponding to 1.1% of its total 13F portfolio. On Broadfin Capital’s heels is Sabby Capital, led by Hal Mintz, holding a $11.5 million position in 8,418,811 shares; the fund has 0.5% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Julian Baker and Felix Baker’s Baker Bros. Advisors, Israel Englander’s Millennium Management and Hal Mintz’s Sabby Capital.
Also at the end of the first quarter, a total of 7 of the hedge funds tracked by Insider Monkey held long positions in Tetralogic, a change of 40% from one quarter earlier. Value of holdings increased from $3.17 million to $3.58 million, up 12.87%, from the end of the fourth quarter of 2014 to the end of the first quarter of 2015. This is a substantial increase as the stock declined 8.71% from January 2 to April 1. According to hedge fund experts at Insider Monkey, Kingdon Capital, managed by Mark Kingdon, holds the biggest position in Tetralogic Tetralogic Pharmaceuticals Corp (NASDAQ:TLOG). Kingdon Capital has a $1.2 million position in 263,827 shares of the company, comprising less than 0.1% of its 13F portfolio. Sitting at the No. 2 spot is Steve Cohen of Point72 Asset Management, with 125,559 shares worth about$550,000; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism contain Stuart Weisbrod’s Iguana Healthcare Management, Anand Parekh’s Alyeska Investment Group and Efrem Kamen’s Pura Vida Investments.
Disclosure: None
