Why Fitbit, Transocean and 3 Other Stocks are Gaining Ground Today

The U.S markets are making noise on Thursday amid payroll processor ADP reporting that private employers added 172,000 jobs in June, better than the forecasts of 160,000 jobs. That has sent all three major indexes well into green as we approach midday.

Among the individual stocks that are gaining ground today we’ve found Hain Celestial Group Inc (NASDAQ:HAIN), Birks Group Inc (NYSEMKT:BGI), Transocean LTD (NYSE:RIG), Fitbit Inc (NYSE:FIT) and SemiLEDs Corporation (NASDAQ:LEDS). Let’s find out why these stocks are in the good graces of investors today and check out what hedge funds think about each of them.

Through extensive research, we have determined that the due diligence that hedge funds employ, as well as their long-term focus makes them perfect targets to emulate. However, the results of our analysis have also showed that the small-cap picks of these funds can generate much better returns, with the 15 most popular small-cap stocks beating the market by an average of 95 basis points per month (read more details here).

Fitbit Trackers to be Used in Major Cancer Study

Shares of Fitbit Inc (NYSE:FIT) continue to gain value following the company’s announcement of its partnership with the Dana-Farber Cancer Institute for the purpose of conducting research to determine whether exercise helps decrease the recurrence of breast cancer. Fitbit’s fitness trackers will be used in the six-year-long study, which is scheduled to start in August and will involve 3,200 women. Fitbit trackers will help the researchers to track and monitor the activity of the participants to ensure the most accurate study results. At the end of the first quarter, 30 hedge funds in our database were long in Fitbit Inc (NYSE:FIT), the shares of which are up by 4% today.

Hain Celestial Rising on Potential Merger or Acquisition

Hain Celestial Group Inc (NASDAQ:HAIN)’s stock has surged by more than 9% today as speculation regarding its possible buyout strengthened after French food company Danone announced the acquisition of WhiteWave Foods today. New York-based organic and natural foods company Hain Celestial has been hurt by large grocers penetrating the market with their own natural food brands. This shift in the market has made Hain Celestial and other such food companies vulnerable to mergers.

Our database shows that 19 hedge funds that we track were bullish on Hain Celestial Group Inc (NASDAQ:HAIN) as of the end of the first quarter, down heavily from 31 funds a quarter earlier. Philippe Laffont’s Coatue Management owns about 1.03 million shares of the company as of March 31.

On the next page we’ll look into why Transocean, Birks Group and SemiLEDs are gaining ground today.

Birks Group Finally Reaches Profitability

Birks Group Inc (NYSEMKT:BGI)’s stock continues to gain ground after the company announced on Tuesday that it had climbed out of a four-year pit, reaching profitability for the first time since 2012. The Canada-based jewelry company reported a 3% year-over-year increase in comparable-store sales for fiscal year 2016 ended March 26. In a statement, Birks CEO Jean-Christophe Bédos said that the company improved its net income by $14.0 million over the previous fiscal year, when it registered a net loss of $8.6 million.

Transocean Announces Offering

Transocean LTD (NYSE:RIG) is in the news after the company said on Tuesday that it had commenced an offering of $1.5 billion aggregate principal amount of senior unsecured notes due 2023. The company is also making a cash tender offer to buy up to $1 billion principal amount of 6.5% senior notes due 2020, 6.375% senior notes due 2021 and 3.8% senior notes due 2022. An article published by Forbes said that Transocean is tapping the high-yield bond market for the first time as a ‘fallen angel’. A fallen angel is a bond issuer whose rating has been downgraded from ‘Investment Grade’ to ‘Speculative Grade’. Transocean’s stock has been punished recently due to its burgeoning number of stacked and idle rigs and its $2.75 billion in debt maturing before 2020. However, hope is growing that Transocean will be able to right itself following a rally in oil prices this year. Transocean’s stock has jumped by more than 6% so far today.

Dr. Peter Chiou Buys Stake in SemiLEDs

SemiLEDs Corporation (NASDAQ:LEDS) has skyrocketed by more than 123% after the company announced on Wednesday that it had reached a definitive agreement with Dr. Peter Chiou, according to which Dr. Chiou will purchase 577,000 shares of SemiLEDs’ common stock at $5.00 per share. Upon completion of the share purchase, Dr. Chiou will be appointed to SemiLEDs Corporation’s Board of Directors, a role which he has agreed to waive all compensation for. Dr. Chiou also intends to subscribe to a $1.615 million 0% interest convertible note with a September 29, 2017 maturity date. Only three hedge funds in our system were long SemiLEDs Corporation (NASDAQ:LEDS) at the end of the first quarter.

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