Why Descartes Systems Group Inc. (USA) (DSGX), AmeriGas Partners LP (APU), and Three Other Stocks Are in Spotlight Today

The broad market is trading lower today amid news about the resignation of Wells Fargo CEO John Stumpf, who has been replaced by Tim Sloan. Markets are also reacting to mixed third-quarter results posted by by Delta Air Lines.

Apart from these news, the stock market is also affected by a number of trending stocks, among which are Descartes Systems Group Inc. (USA) (NASDAQ:DSGX), AmeriGas Partners LP (NYSE:APU), Royal Bank of Scotland Group PLC (NYSE:RBS), PICO Holdings Inc. (NASDAQ:PICO), and Imperva Inc. (NYSE:IMPV). Let’s take a closer

We determine hedge fund sentiment by analyzing the equity portfolios of some of the best-performing hedge funds and institutional investors. Through extensive research, we have determined that the due diligence that these investors employ, as well as their long-term focus makes them perfect targets to emulate. However, the results of our analysis have also showed that the small-cap picks of these funds can generate much better returns, with the 15 most popular small-cap stocks beating the market by an average of 95 basis points per month (see more details here).

Descartes Systems Group Inc. (USA) (NASDAQ:DSGX) stock has ticked higher following the announcement about its acquisition of Appterra, which provides cloud based B2B supply chain integration solutions. The deal involves an upfront payment of $5.8 million along with potential performance-based consideration, subject to the maximum of $1.6 million. Among the funds we track, four funds held $24.60 million worth of Descartes Systems Group’s stock at the end of June, having amassed 1.70% of its outstanding stock, compared to six investors that had owned $35 million worth of shares a quarter earlier.

AmeriGas Partners LP (NYSE:APU) stock is upbeat as the company announced its earnings forecast for fiscal 2016 and 2017. For the current fiscal year, the company expects a net income of $205 million while adjusted EBITDA is likely to be at $540 million, down from the previous estimate of $575-$600 million. The fall is primarily due to increase in reserves for litigation and general liability. For fiscal 2017, AmeriGas Partners expects the adjusted EBITDA to be in the range of $660 million to $700 million. The number of funds from our database long AmeriGas Partners declined to five from seven during the second quarter, while the total value of their holdings fell to $3.88 million from $5.28 million.

On the next page, we are going to discuss the other three stocks that are trending on Thursday.

Royal Bank of Scotland Group PLC (NYSE:RBS) stock has declined by some 3.90% as the bank was barred by the US government in a rare warning. The banking company has been prohibited from managing 401(k) plans and other retirement funds, in response to its foreign exchange collusion and interest rate manipulation activities. The company had requested for a waiver, but the request was declined by the Labor Department. Nine investors tracked by us have positions in Royal Bank of Scotland Group as of the end of June, down by one over the quarter.

PICO Holdings Inc. (NASDAQ:PICO) has surged by nearly 9% after the company announced the conclusion of the Synthonics investigation, which reviewed its investment in Synthonics Inc. The investigation found out that the Audit Committee was provided with required material information before its investment in Synthonics in 2010. PICO Holdings also announced the termination of John R. Hart as the CEO of PICO Holdings and Vidler Water Company. The company’s CFO and Treasurer Maxim C.W. Webb has been appointed as the new CEO. Eight hedge funds we track hold about $44 million of PICO Holdings stock as of the end of June, compared to nine funds and $40 million, respectively, a quarter earlier.

Imperva Inc. (NYSE:IMPV) has inched down amid reports of a potential takeover. According to Bloomberg citing people familiar with the matter, Silver Lake Management and Thoma Bravo are planning to announce their bids, while tech giants Cisco Systems and International Business Machines are also interested to acquire the company as it was rumored back in September. The stock surged yesterday, when the news emerged, but today it is 1.70% in the red. A total of 21 funds tracked by us amassed about $243 million worth of Imperva stock at the end of June, versus 15 funds with stakes worth $97 million a quarter earlier.

Disclosure: none