U.S stocks are sliding on Thursday, along with oil, which is tumbling due to rising inventories. The Euro was also down as the European Central Bank decided to abstain from unleashing any further stimulus measures. Among the stocks posting large moves in Thursday trading are Kingtone Wirelessinfo Solutions Hldg Ltd (NASDAQ:KONE), F.N.B. Corp (NYSE:FNB), Yadkin Financial Corp (NYSE:YDKN), Interpublic Group of Companies Inc (NYSE:IPG), and Encana Corp (USA) (NYSE:ECA). Let’s take a look at the events behind the movement in these stocks and see what the funds in our database think about these companies.
At Insider Monkey, we track around 765 hedge funds and other 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 (see more details about our small-cap strategy).
Kingtone Spikes After Ocean Power Tech Offering
Let’s start with Kingtone Wirelessinfo Solutions Hldg Ltd (NASDAQ:KONE), a nano-cap mobile enterprise solutions company whose stock has surged by more than 300% in trading today. While most news outlets are not reporting any news related to the company, the Benzinga Pro terminal shows that shares were halted “on Second Circuit Breaker” in the late morning. Later, the terminal reported that Kingtone’s spike was related to news about Ocean Power Technologies Inc (NASDAQ:OPTT)’s public offering. Ocean Power announced a best efforts public offering of common stock and warrants earlier today, though it’s unclear how that relates to Kingtone Wirelessinfo Solutions.
Only one fund in our database was long Kingtone Wirelessinfo Solutions Hldg Ltd (NASDAQ:KONE) at the end of the first quarter of this year: Renaissance Technologies. The quant fund founded by Jim Simons disclosed ownership of 11,380 shares of the company as of March 31.
F.N.B. and Yadkin Both Tumble On Merger News
Next up is F.N.B. Corp (NYSE:FNB), which has lost more than 10% since the market opened today, even though it posted a top and bottom-line beat this morning. The company delivered EPS of $0.22 and revenue of $208.57 million for the quarter, beating estimates by $0.01 and $4.17 million, respectively. What seems to be driving the stock’s decline is the announcement of the company’s acquisition of Yadkin Financial Corp (NYSE:YDKN) in a $1.4 billion deal that values the latter at $27.35 per share. Shares of Yadkin are also down, by about 4.75% this afternoon, trading around $24.70, a rare case where the shares of a company being acquired don’t rally.
As of the end of the first quarter, F.N.B. Corp (NYSE:FNB) counted 12 hedge fund supporters in our database, while Yadkin Financial Corp (NYSE:YDKN) counted 13. One fund that held stakes in both of these companies on March 31 was, once again, Renaissance Technologies, which declared owning 769,896 shares of Yadkin and 339,118 shares of F.N.B as of the end of March.
We’ll check out two of the day’s other trending stocks on the next page.