The markets are mixed on Tuesday morning as investors mull the implications of a summer rate hike, which send gold sinking below the $1,200-mark. However, some stocks are flying high today, including Celator Pharmaceuticals Inc (NASDAQ:CPXX), Cliffs Natural Resources Inc (NYSE:CLF), SciQuest, Inc. (NASDAQ:SQI), Tata Motors Limited (ADR) (NYSE:TTM), and Brocade Communications Systems, Inc. (NASDAQ:BRCD). Let’s find out why these stocks are surging today and analyze the latest hedge fund sentiment towards each of them.
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Jazz Pharmaceuticals Acquires Celator Pharmaceuticals
Celator Pharmaceuticals Inc (NASDAQ:CPXX)’s stock skyrocketed more than 71% after the company announced that it is being acquired by Jazz Pharmaceuticals plc – Ordinary Shares (NASDAQ:JAZZ) for $30.25 per share in cash, or approximately $1.5 billion. Back in March, the Princeton, New Jersey-based pharmaceutical company surprised investors and analysts with positive results from a trial of its leukemia drug Vyxeos. The stock surged by more than 400% after the announcement of the results. In a statement, Bruce Cozadd, Jazz’s CEO, said that Vyxeos, for which Celator is set to apply for approval, will allow the company to add a major revenue stream in the future. Shares of Jazz Pharmaceuticals are flat in trading today.
As of the end of the first quarter of 2016, 19 hedge funds were long Celator Pharmaceuticals Inc (NASDAQ:CPXX), up from just 3 hedge funds a quarter earlier. Behzad Aghazadeh’s VenBio Select Advisor owns more than 1.4 million shares of the company.
Cliffs Natural Resources Gets New Contract from ArcelorMittal
Shares of Cliffs Natural Resources Inc (NYSE:CLF) have soared by more than 37% today after the company announced a new agreement with ArcelorMittal SA (ADR) (NYSE:MT) to supply the company with iron ore pellets until 2026. The contract sets a limit of minimum tonnage of pellets at 7 million long tons, which is higher than the limit set in the previous two contracts between the two companies. ArcelorMittal SA is the biggest customer of the Ohio-based mining company. J.P. Morgan also upgraded its rating on Cliffs Natural Resources to ‘Overweight’ from ‘Neutral’ on Tuesday, amid better-than-expected steel prices and the new contract with ArcelorMittal.
Robert Henry Lynch’s Aristeia Capital is one of the biggest stakeholders in Cliffs Natural Resources Inc (NYSE:CLF) as of the end of first quarter, with ownership of more than 4.6 million shares of the company. It is one of the 14 hedge funds in our database which had positions in the company at that time.
We will analyze why SciQuest, Tata Motors and Brocade Communications are gaining ground today on the next page.