Why Are Shares of These Trending Stocks on the Move?

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Shares of Rite Aid Corporation (NYSE:RAD) rallied by 42.6% on Tuesday after Walgreens Boots Alliance Inc (NASDAQ:WBA) announced it will acquire Rite Aid for $9 in cash per share. Walgreens hopes the acquisition will give it more pricing power over drug companies and expand its national footprint. The $17.2 billion deal, which is expected to close in the second half of 2016, will be accretive in the first full year and should yield as much as $1 billion in cost savings.

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Hedge funds in our database were bullish on Walgreens Boots Alliance Inc (NASDAQ:WBA) in the second quarter. A total of 81 funds reported stakes worth $9.13 billion (accounting for 9.90% of the float) at the end of June, up from 69 funds and $7.48 billion respectively at the end of March. Hedge funds were also bullish on Rite Aid in the same time period, with 55 funds reporting stakes worth $972.76 million as of the end of June. Among the lucky shareholders of Rite Aid in the second quarter was Larry Robbins‘ Glenview Capital.

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