Although the broader markets are in the green, shares of Rewalk Robotics Ltd (NASDAQ:RWLK), Theravance Biopharma Inc (NASDAQ:TBPH), AK Steel Holding Corporation (NYSE:AKS), Groupon Inc (NASDAQ:GRPN), and Community Health Systems (NYSE:CYH) are deep in the red this morning.
In this article, we’ll find out why traders are selling off the five stocks today and use 13F filings to determine how the smart money tracked by our team has been positioning themselves in them.
Our research 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).
Rewalk Robotics Ltd (NASDAQ:RWLK) shares have plunged by 25.28% after the company announced a secondary offering of 3.25 million units at $3.75 per unit. Each unit consists of one ordinary share of the company, and 0.75 of a warrant to buy one ordinary share with an exercise price of $4.75. In addition, ReWalk has granted Oppenheimer & Co a 30-day option to buy an additional 487,500 units. The company intends to use the net proceeds from the offering for general corporate purposes. Only one of the funds that we track owned shares of Rewalk Robotics Ltd (NASDAQ:RWLK) at the end of June, that being D E Shaw (35,402 shares).
Theravance Biopharma Inc (NASDAQ:TBPH) is 14% in the red after the biotech company announced a proposed public offering of $100 million of ordinary shares and another offering of $150 million of convertible senior notes due 2023. The company also intends to grant underwriters a 30-day option to buy up to an additional $15 million in ordinary shares and up to $22.5 million principal amount of additional notes. The exact pricing of the two offerings was not disclosed during the initial press release. Of the 749 hedge funds that we track which filed 13Fs for the June quarter, 12 funds owned $433.56 million worth of Theravance Biopharma Inc (NASDAQ:TBPH) shares on June 30, which accounted for 40.30% of the float and was up from nine funds with $298.66 million in holdings on March 31.
On the next page we’ll examine why traders are selling off Groupon, AK Steel, and Community Health Systems this morning.