In this article, we will discuss some of the notable stocks trending today. To take a look at some more stocks that are gaining, go to Trending Stocks on Tuesday: Top 5 Gainers.
According to RBC Capital Markets, investors who are bullish about US equities over a course of the “next six months to a year have nearly vanished” as the Federal Reserve tightens its monetary policy due to high inflation. The indices today are reflecting these sentiments, with the S&P 500 index down 0.81% and the NASDAQ Composite index down 1.97% as of 1 PM ET. However, some of the popular stocks such as Peabody Energy Corporation (NYSE:BTU), Twitter, Inc. (NASDAQ:TWTR), and Carnival Corporation & plc (NYSE:CCL) were seen making gains today.
Let’s look at why these stocks are gaining today and discuss how hedge funds are positioned in them.
10. Arcus Biosciences, Inc. (NYSE:RCUS) has gained 10.1% as of 12:21 PM ET after S&P Dow Jones Indices included the Hayward, California-based biotech company in the S&P SmallCap 600. Arcus Biosciences, Inc. (NYSE:RCUS) will replace Investors Bancorp, Inc. (NASDAQ:ISBC). The change will be effective before the opening bell on Thursday. Investors Bancorp is making way as Citizens Financial Group, Inc. (NYSE:CFG) is acquiring the company and intends to close the deal in the near future. Inclusion in the S&P SmallCap 600 will bring investment into Arcus Biosciences, Inc. from various diversified funds that replicate the performance of the index.
Of the 924 hedge funds in Insider Monkey’s database, Arcus Biosciences, Inc. was held by 22 hedge funds as of Q4 2021.
9. First Republic Bank (NYSE:FRC) is up 1.8% as of 10:50 AM ET after the San Francisco, California-based regional bank was upgraded from an Underperform to a Neutral rating by Roth Katzke at Credit Suisse in a report issued earlier today. The analyst gave a target price of $187, reflecting a potential upside of 16% from the last closing price. The stock price of First Republic Bank (NYSE:FRC) has lost 22% of its value since the start of 2022 as the bank was undergoing a transition in management. Katzke thinks that the transition is now complete and First Republic Bank is on the move forward.
As of Q4 2021, First Republic Bank was held by 39 hedge funds. Select Equity Group is long over 3 million shares of First Republic Bank.
8. Teva Pharmaceuticals Limited (NASDAQ:TEVA) is 3.3% in the green as of 10:00 AM ET after the Israeli pharmaceutical company was upgraded from an Equal Weight to an Overweight rating at Barclays. The price target on Teva Pharmaceuticals Limited (NASDAQ:TEVA) was also increased from $11 to $13, reflecting a potential upside of over 31% from the last closing price. Barclays increased its revenue forecast for Teva Pharmaceuticals Limited because of the Humira biosimilar, which the company intends to sell in the US in collaboration with Alvotech. Humira has already been marketed and distributed by AbbVie Inc. (NYSE:ABBV) last year and generated sales of around $20.7 billion.
At the end of Q4 2021, 27 hedge funds held a stake in Teva Pharmaceuticals Limited.
7. UnitedHealth Group Incorporated (NYSE:UNH) has risen 2.7% as of 12:19 PM ET after the Minnesota-based diversified healthcare and insurance company announced that it would extend the deadline of the merger with Change Healthcare Inc. (NASDAQ:CHNG) from April 2022 to December 2022. The delay has been due to a lawsuit from the Department of Justice regarding the merger. If the merger does not go through, Change Healthcare, a Nashville, Tennessee-based health information services corporation, will receive a $650 million fee from Optum, the health information division of UnitedHealth Group Incorporated (NYSE:UNH). In case the merger goes through, Change Healthcare intends to give out a special dividend of $2 per share.
Overall, 96 hedge funds held a stake in UnitedHealth Group Incorporated at the end of Q4 2021. GQG Partners is the leading investor in UnitedHealth Group Incorporated, with a stake worth over $1.9 billion.
6. Baxter International Inc. (NYSE:BAX) has jumped 2.6% as of 12:19 PM ET after the Deerfield, Illinois-based medical instruments and supplies company received the 510(k) go-ahead for its ST set that is employed in continuous renal replacement therapy (CRRT) from the FDA. The ST set is a pre-connected circuit placed outside the body of the patient that purifies blood through a semipermeable membrane that is used alongside PrisMax or Prismaflex control units.
Out of the 924 hedge funds being covered by Insider Monkey, 42 funds reported owning a stake in Baxter International Inc. as of Q4 2021.
Apart from Baxter International Inc., some of the other notable stocks trending today include Peabody Energy Corporation, Twitter, Inc., and Carnival Corporation & plc (NYSE:CCL).
Click to continue reading and see the Trending Stocks on Tuesday: Top 5 Gainers.
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This article is originally published at Insider Monkey.
