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.Technical Trading Detected at Inovio
Although there is no fundamental news concerning the company, Inovio Pharmaceuticals Inc (NASDAQ:INO) shares are in the red as some traders take profits on the stock’s 67% year-to-date rally. Inovio’s shares have had a difficult time passing the $11.5 mark, and the stock is now below some key moving averages. Of the 766 elite funds we track, Six funds amassed $4.66 million worth of Inovio Pharmaceuticals Inc (NASDAQ:INO)’s stock, which accounted for 0.70% of the float on March 31, versus 11 funds and $16.28 million, respectively, a quarter earlier.
Fitbit Declines Due to Technicals
Fitbit Inc (NYSE:FIT) shares have retreated 4.5% in afternoon trading on volume above average as some traders sell the stock for technical reasons. Fitbit shares have fallen below several key simple moving averages and have retreated by more than 50% year-to-date on competition and commoditization concerns. Although its shares now trade for under 10 times forward earnings estimates, some value investors are likely holding back until the next earnings report to ensure that demand for Fitbit products remain robust. At the end of March, 30 funds among those we track were long Fitbit Inc (NYSE:FIT) at the end of March, up by three from the previous quarter.
Nymox Rises on Study
Nymox Pharmaceutical Corporation (NASDAQ:NYMX) has surged 27% after a 7-year prospective study of 995 U.S. middle and elderly aged men without cancer showed that men who received Nymox’s lead drug Fexapotide had a major reduction in the incidence of prostate cancer than compared to placebo. Currently Fexapotide is in phase 3 for BPH and phase 2 trials for prostate cancer. With the results of the 7-year study, Fexapotide could potentially used for the indication of clinical prostate cancer prevention too. None of the funds in our database held shares of Nymox Pharmaceutical Corporation (NASDAQ:NYMX) at the end of March.