In a marked reversal, crude futures are off 1.4% today after a disappointing EIA report, while the broader indexes are each higher as traders await the ‘Brexit’ outcome tomorrow.
Among the stocks showing more volatility than the indexes are MBIA Inc. (NYSE:MBI), Emergent Biosolutions Inc (NYSE:EBS), Inovio Pharmaceuticals Inc (NASDAQ:INO), Fitbit Inc (NYSE:FIT), and Nymox Pharmaceutical Corporation (NASDAQ:NYMX). Let’s find out why these stocks are trending today and see how the smart money investors tracked by us are positioned towards them.
While there are many metrics that investors can assess in the investment process, the hedge fund sentiment is something that is often overlooked. However, hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor to beat the S&P 500 by around 95 basis points per month (see the details here).
MBIA Rises on Analyst Commentary
MBIA Inc. (NYSE:MBI) shares have inched up by over 1% after BTIG analyst Mark Palmer reiterated his ‘Buy’ rating on MBIA and raised his price target to $14 from $13 per share. Palmer thinks the recent breakdown in discussions between creditors and Puerto Rico isn’t necessarily a negative sign as the two parties could come back on the table again. If the parties reach an acceptable agreement, MBIA shares could benefit from the lower uncertainty. A total of 23 funds in our database had a bullish position in MBIA Inc. (NYSE:MBI) at the end of March, unchanged from the previous quarter.
Emergent Declines on Solicitation Notices
Emergent Biosolutions Inc (NYSE:EBS) is 20% lower after the U.S. government issued solicitation notices to procure up to 56.4 million doses of anthrax vaccines. The notices include the procurement of 29.4 million doses of BioThrax and 27 million dose regimens of a next generation anthrax vaccine. Although Emergent intends to respond to both solicitations to meet the government’s timeline for completing the BioThrax procurement contract award in September and timely completion of a next generation anthrax vaccine advanced development contract award, traders were evidently expecting the government to procure more vaccines. The number of funds tracked by us with holdings in Emergent Biosolutions Inc (NYSE:EBS) rose by one quarter-over-quarter to 17 at the end of March.
On the next page, we examine Inovio Pharmaceuticals, Fitbit, and Nymox Pharmaceutical Corporation.