Why Are These Stocks on the Move Today?

With volatility a bit lower this morning after yesterday’s more than 2% move,  Fiat Chrysler Automobiles NV (NYSE:FCAU), Chipotle Mexican Grill, Inc. (NYSE:CMG), WebMD Health Corp. (NASDAQ:WBMD), and ASML Holding NV (ADR) (NASDAQ:ASML) are each on the move. Without further ado, let’s check out why investors are buying and selling these stocks as well as how top investors have been buying and selling them lately.

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Fiat Chrysler Automobiles NV (NYSE:FCAU) has fallen by more than 6% today after two separate car dealerships accused the company of falsifying sales. In a civil racketeering lawsuit, the two prosecuting parties claimed that Fiat Chrysler had paid certain dealers money to pad sales in order to “create the appearance that FCA’s performance is better than, in reality, it actually is.”

Fiat Chrysler Automobiles NV (NYSE:FCAU) responded with the following press release:

“While the lawsuit has not yet been served on FCA US, the company believes that the claim is without merit and was filed by internal counsel to the dealer group as FCA US has concurrently been discussing with the dealer group the need to meet its obligations under some of its dealer agreements. The company is confident in the integrity of its business processes and dealer arrangements and intends to defend this action vigorously.”

If the accusations against Fiat Chrysler are true, management will need to do a lot of damage control to restore its credibility. It may also need to restate its results. Hedge fund sentiment around the stock has been stable, with the number of elite shareholders falling by just one quarter-over-quarter to 34 as of September 30.

Chipotle Mexican Grill, Inc. (NYSE:CMG) shares are 2% higher today as the chain continues to rebound from its previous month’s atrocious performance, due to food safety concerns. Investors are buying today because analysts at Credit Suisse reiterated their ‘Outperform’ rating, with a $530 price target on the stock, and because management promised to make major efforts to win back customers. In an investor presentation yesterday, Chipotle Mexican Grill, Inc. (NYSE:CMG) management reiterated their plan to increase the number of restaurants and to be a world leader in food safety to ensure that the company’s E. coli problems won’t ever happen again. The company is also planning a major marketing campaign that will hopefully increase same-store sales. 28 elite funds owned 4.9% of Chipotle’s shares at the end of the third quarter. That was down from 36 elite funds that held shares at the end of the second quarter.

On the next page we examine the latest news concerning WebMD Health Corp and ASML Holding NV (ADR).

Shares of online health repository WebMD Health Corp. (NASDAQ:WBMD) are on a trek upwards today after the Financial Times published an article stating that the company is exploring a possible sale of part or all of its business. According to the article, Walgreens Boots Alliance Inc (NASDAQ:WBA) and UnitedHealth Group Inc (NYSE:UNH) are among the potential interested buyers. The smart money is optimistic on WebMD Health Corp. (NASDAQ:WBMD), as 26 elite funds own more than one-third of the float. Shares of WebMD are up 5% on the news.

Last but not least, ASML Holding NV (ADR) (NASDAQ:ASML) is in the green today after gapping up by 2.8% in the morning. Although there is no specific news behind today’s rally, traders could be buying because of the round $80 per share level. Shares of ASML Holding NV (ADR) (NASDAQ:ASML) are also a bit cheaper than they were at the beginning of the year, with the stock down by over 8% year-to-date. Ken Fisher‘s Fisher Asset Management was one of the nine elite funds that collectively held 0.4% of ASML’s float at the end of September.

Disclosure: None