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Fitbit Inc (FIT) Among 5 Stocks That Are Trending Today

At a time when all three indexes are in the green, shares of Canadian Pacific Railway Limited (USA) (NYSE:CP), Norfolk Southern Corp. (NYSE:NSC), Synergy Resources Corp (NYSEMKT:SYRG), Fitbit Inc (NYSE:FIT), and Clovis Oncology Inc (NASDAQ:CLVS) are on the move for various reasons. Let’s find out why and examine what the world’s greatest investors think of each stock.

Our backtests that covered the period between 1999 and 2012, showed that following the 15 most popular small-caps among hedge funds can help a retail investor beat the market by an average of 95 basis points per month (see the details here).

Canadian Pacific Railway Limited (USA) (NYSE:CP) shares have surged by almost 4% while Norfolk Southern Corp. (NYSE:NSC) shares have retreated by 2.5% on the news that Canadian Pacific has officially terminated its efforts to merge with Norfolk. Canadian Pacific had been pursuing a merger between the two for several quarters without success. Due to getting the cold shoulder from Norfolk Southern repeatedly, Canadian Pacific is ending its efforts today, with no further financial offers or overtures planned at this time. Canadian Pacific CEO Hunter Harrison said:

“We have long recognized that consolidation is necessary for the North American rail industry to meet the demands of a growing economy, but with no clear path to a friendly merger at this time, we will turn all of our focus and energy to serving our customers and creating long term value for CP shareholders.”

Bill Ackman‘s Pershing Square was the largest shareholder of Canadian Pacific Railway Limited (USA) (NYSE:CP) in our database at the end of 2015, with a holding of almost 14 million shares. 28 other funds that we track also owned shares of Canadian Pacific. Meanwhile, 32 elite funds owned $513.16 million of Norfolk Southern Corp. (NYSE:NSC)’s shares, which accounted for 2.00% of the railway holding company’s float on December 31.

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In other news, Synergy Resources Corp (NYSEMKT:SYRG) shares are 7.6% in the red after the company announced its intention to sell 19.5 million of common stock in a secondary offering and grant the underwriters of said offering the option to purchase an additional 2.925 million shares. Synergy intends to use the net proceeds for general corporate purposes and for potential future acquisitions. Shares of the oil and gas company have rallied substantially since the middle of February on the back of rising crude prices. Ten hedge funds in our system owned 2.3% of Synergy Resources Corp (NYSEMKT:SYRG)’s shares at the end of the fourth quarter.

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On the next page we examine why Fitbit Inc and Clovis Oncology Inc are making some noise among investors today.
Fitbit Inc (NYSE:FIT) shares are over 5% higher in late morning trading after Morgan Stanley’s Katy Huberty released a note stating that her firm’s channel checks indicate that Fitbit’s first quarter results and second quarter guidance could top consensus estimates. Ms. Huberty believes Fitbit will increase its full year guidance and has an ‘Overweight’ rating on the company.

Hedge funds have been more bullish on Fitbit Inc (NYSE:FIT) of late, with the number of elite funds holding shares of the company rising by seven quarter-over-quarter to 27 as of December 31. Likewise, the total value of their holdings increased to $350.57 million as of December 31, up from just $186.79 million on September 30.

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Clovis Oncology Inc (NASDAQ:CLVS) has continued its short-term downtrend today, with shares down by 4%, as investors prepare for an upcoming advisory committee meeting. The FDA’s Oncologic Drugs Advisory Committee is set to meet tomorrow to analyze the company’s NDA for rociletinib for the treatment of patients with epidermal growth factor receptor-positive non-small cell lung cancer. Based on the contents of the FDA’s briefing document, it is uncertain whether the committee will give the treatment a thumbs up. 24 funds tracked by Insider Monkey held more than half of Clovis Oncology Inc (NASDAQ:CLVS)’s float at the end of 2015. 19.5% of the company’s float is short.

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Disclosure: None