Despite earnings season gearing up, it’s a quiet day on Wall Street as all three indexes are close to flat. The Dow is down 23 points, the S&P 500 is off 0.07% and the NASDAQ is 0.03% in the red.
Among the stocks showing more volatility than the indices are RLJ Entertainment Inc (NASDAQ:RLJE), AMC Networks Inc (NASDAQ:AMCX), Delek US Holdings, Inc. (NYSE:DK), SUPERVALU INC. (NYSE:SVU), and Apple Inc. (NASDAQ:AAPL). Let’s examine the events that put each stock in the spotlight and see what the smart money investors we track at Insider Monkey think about each of them.
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RLJ Entertainment Inc (NASDAQ:RLJE) has spiked by 16% and AMC Networks Inc (NASDAQ:AMCX) is trending after the two announced that they have formed a strategic partnership for streaming services. Under the terms of the agreement, AMC Networks will invest $65 million in the form of loans to RLJ to refinance the company’s existing senior credit facility, and to generally improve the company’s balance sheet. In addition, AMC Networks has received warrants that, if exercised, will give AMC at least 50.1% of the outstanding RLJ Entertainment common stock. AMC’s investment will accelerate the development and distribution of diverse content and films from RLJ across different platforms. According to our database, the number of funds with holdings in RLJ Entertainment Inc (NASDAQ:RLJE) rose by one quarter-over-quarter to three at the end of June. Meanwhile, 24 funds amassed $263.83 million worth of AMC Networks Inc (NASDAQ:AMCX)’s stock, which accounted for 6.00% of the float on June 30.
Delek US Holdings, Inc. (NYSE:DK) is in the spotlight after it offered to buy all of Alon USA Energy, Inc. (NYSE:ALJ)’s outstanding shares of common stock it doesn’t already own. The proposal is for an all-stock transaction at a fixed exchange ratio of 0.44 shares of Delek common stock for each outstanding share of the common stock of Alon. Alon has said it will consider the deal. A total of 18 funds tracked by us were long Delek US Holdings, Inc. (NYSE:DK) at the end of the second quarter, unchanged from the previous quarter.
On the next page, we will examine SUPERVALU and Apple.