After taking account of the Monday morning opening prices of three stocks and their performances in just a few hours, we will share with you some insight into what have led to the steady rise in their share prices and why they are among the hottest stocks today. The three stocks are Aratana Therapeutics Inc (NASDAQ:PETX), Steadymed Ltd (NASDAQ:STDY), and MYR Group Inc (NASDAQ:MYRG). Well, we will also talk about hedge fund activities surrounding these stocks to establish whether they represent good investment ideas.
Let’s first take a quick look at Aratana Therapeutics Inc (NASDAQ:PETX), which has gained 11.61% and is currently trading at $16.56, up from its $14.75 closing on Friday. The leap is as a result of the announcement the company made on Friday after the market close that its research into capromorelin statistically showed significant increase in appetite compared to placebo in a study that was carried out in dogs. The revelation made the stock to outdo its 50 and 200-day moving averages. According to the company’s most recent reporting, it posted a loss of $0.26 per share, beating Thomson Reuters consensus estimate loss of $0.40 per share.
Considering hedge fund activity in Aratana Therapeutics Inc (NASDAQ:PETX), a total of 12 hedge funds out of the more than 700 in our database were invested in the company at the end of the first quarter of 2015, down from 16 at the end of the previous quarter. However, it is good news that Michael Castor’s Sio Capital is still invested in the stock. Castor is one of our favorite healthcare fund managers.
The gain posted by Steadymed Ltd (NASDAQ:STDY) is a result of the announcement of a deal the company has sealed with Cardiome over the commercialization of Trevyent in specified areas outside the United States. Trevyent is used for the treatment of pulmonary arterial hypertension or PAH. The deal gives $12.25 million in relation to regulatory and sales milestones, and spells out an upfront payment of $3 million. The announcement has seen the stock rise 2.5% today and is currently trading at $5.26 after opening at $5.19.
MYR Group Inc (NASDAQ:MYRG) is another stock that has gained today, now trading at $31.31, gaining 3.56% based on the opening price of $30.72. This is even made more interesting by the fact that the stock’s shares traded by more than 700% compared to its normal trading volume. The stock has gapped after news came out on Friday that it will replace Molina Healthcare in the S&P SmallCap 600 Index after the market close on Tuesday, June 30. In its first quarter earnings report, MYR Group posted earnings per share of $0.34, beating consensus estimate by $0.04. That was on revenue of $244.10 million, representing 13.20% growth on year-over-year basis. Whether the company will maintain a strong trading is to be seen. However, analysts at Zacks expect it to report earnings per share of $0.41 for the current quarter and $1.68 for the current fiscal year.
At the end of the first quarter of 2015, we had 16 hedge funds out of the more than 700 that we track hold stakes in the stock, showing a 100% increase from eight at the end of the fourth quarter of 2014. This is a bullish indicator for a $600 million stock.