U.S indexes are slightly down in Thursday trading, driven by disappointing quarterly results from several U.S and European companies, as well as large declines in the U.S. Dollar and oil. However, as usual, plenty of stocks are moving in both directions on their own specific catalysts. We’ll take a look at five of them in this article, which are Healthways, Inc. (NASDAQ:HWAY), Triumph Group Inc (NYSE:TGI), Sothebys (NYSE:BID), Franks International NV (NYSE:FI), and Tempur Sealy International Inc (NYSE:TPX), and see what has traders interested in them today. We’ll also check out what the hedge funds in our database think about these companies.
At Insider Monkey, we track around 765 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details).
Healthways Completes Strategic Review
Let’s start with small-cap Healthways, Inc. (NASDAQ:HWAY), which has gained more than 32.8% on Thursday on roughly 25-times its average trading volume, after announcing it had completed its assessment of strategic alternatives aimed at increasing shareholder value. Among the decisions included in the review was one to sell the company’s healthy living business to its peer Sharecare Inc for $30 million in stock. This will help Healthways “refocus its efforts and investments away from its unprofitable population health division toward its growing targeted health programs business, which includes the Silver Sneakers Fitness brand, one of the country’s largest exercise programs for seniors,” a Reuters article read.
As of the end of the first quarter, 22 funds among those we track held more than 33% of Healthways, Inc. (NASDAQ:HWAY)’s outstanding shares. One of the largest stockholders was James E. Flynn’s Deerfield Management, which held 2.47 million shares of common stock worth almost $25 million, plus a bond valued at more than $70 million.
Triumph Tumbles On Revenue Miss
On the other hand, there’s Triumph Group Inc (NYSE:TGI), which has tumbled by more than 21% since the bell rang this morning, on a revenue miss. Before the market opened, the company posted first quarter EPS of $1.04, $0.01 above the Street’s consensus. However, revenue of $893.25 million, down by 6.9% year-over-year, missed expectations by $3.63 million. 17 funds in our database were long Triumph Group Inc (NYSE:TGI) at the end of March. The largest stake among them was held by Alexander Roepers’ Atlantic Investment Management, which owned more than 3.9 million shares, or almost 8% of the company’s float.
We’ll check out why Sotheby’s, Tempur Sealy, and Franks International are trending today on the next page.