Major U.S stock indexes are up slightly on Thursday as the markets continue to recuperate from their terrible start to 2016. Among the stocks driving the gains are Neos Therapeutics Inc (NASDAQ:NEOS), Under Armour Inc (NYSE:UA), Facebook Inc (NASDAQ:FB), Cirrus Logic, Inc. (NASDAQ:CRUS), and Paypal Holdings Inc (NASDAQ:PYPL), all of which are up substantially in Thursday trading. Let’s take a look at the events behind the strong move by these stocks, and at what the top hedge funds in our database think about these companies.
The smart money sentiment is an important metric that can be used to assess the long-term profitability of a stock. While there are thousands of stocks trading daily on the market, taking a look at what hedge funds think about certain companies can narrow down the search significantly. At Insider Monkey, we track more than 700 hedge funds, whose 13F filings we analyze as part of our small-cap strategy. Our research has shown that imitating a portfolio that includes the 15 most popular small-cap stocks among hedge funds can outperform the market by as much as 95 basis points per month on average (see more details here).
Back to Thursday’s gainers, there’s Neos Therapeutics Inc (NASDAQ:NEOS), which is up by almost 40% in the early afternoon, after the FDA approved the company’s Adzenys XR-ODT for the treatment of ADHD in patients aged six and above. This makes Adzenys XR-ODT the first and only extended-release, orally disintegrating tablet for the treatment of attention-deficit hyperactivity disorder (ADHD).
Among the funds in our database, nine disclosed long stakes in Neos Therapeutics Inc (NASDAQ:NEOS) as of the end of the third quarter. Michael Castor’s Sio Capital was the hedge fund with the largest position of those nine firms, holding 666,729 shares, which accounted for roughly 4.2% of the company’s total outstanding shares.
Next up is Under Armour Inc (NYSE:UA), up by almost 20% following its fourth quarter earnings call this morning. Before the market opened today, the company announced earnings of $0.48 per share on revenue of $1.17 billion for the quarter, beating the Street’s consensus estimate of $0.46 in earnings per share and $1.12 billion in revenue. Upbeat guidance has also helped drive the stock up.
Among the funds that we keep track of, one seemed particularly bullish on Under Armour Inc (NYSE:UA): Donald Chiboucis’ Columbus Circle Investors. Over the third, the firm disclosed ownership of more than 2 million shares, which accounted for almost 1% of the apparel company’s total outstanding stock.
On the next page, we will examine the reasons behind the big gains seen in the shares of Facebook Inc (NASDAQ:FB), Cirrus Logic, Inc. (NASDAQ:CRUS), and Paypal Holdings Inc (NASDAQ:PYPL).