Why Are These Four Stocks Registering Big Gains on Friday?

athenahealth, Inc (NASDAQ:ATHN) is up by 25% today, disappointing David Einhorn, the manager of Greenlight Capital, who has been shorting the stock for more than a year (see details). The stock is gaining ground today on the back of better-than-expected results, including EPS of $0.36 and revenue of $236.1 million, compared to the consensus estimates of $0.26 and $232.96 million respectively. Despite the strong results, the stock is overvalued, trading at a huge 800-times earnings, which supports Einhorn’s case. The sentiment towards athenahealth, Inc (NASDAQ:ATHN) among hedge funds is also weak, with only 18 investors having held long positions equal to 6.90% of athenahealth’s outstanding stock at the end of June.

Quality Systems, Inc. (NASDAQ:QSII) is trading 15% in the green at around $14.85 per share, which is a bit lower than its intraday high of $16.00. The jump in the stock price also came on the back of strong earnings for the company’s second quarter of fiscal 2016, ended September 30. Quality Systems, Inc. (NASDAQ:QSII) reported revenue of $125.4 million, up by 4% on the year, while its non-GAAP net income surged to $0.21 per share, from $0.13 a year earlier. A total of 17 funds from our database held long positions in the company, equal to 7.70% of its outstanding stock at the end of June. Among them, Conan Laughlin‘s North Tide Capital reported ownership of 1 million shares of Quality Systems, Inc. (NASDAQ:QSII) in its latest 13F filing.

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