Among the most notable market movers that have posted hefty gains in trading today are ZS Pharma Inc (NASDAQ:ZSPH), which is up by nearly 12%, and Straight Path Communications Inc (NYSEMKT:STRP), which has done it one percentage point better, up by just over 13%. Let’s take a look at the furious action on these stocks and what we can expect from them in the future.
The $1.53 billion biopharmaceutical company ZS Pharma Inc (NASDAQ:ZSPH) has seen a surge in volume today as investors took positions in the company sensing a possible acquisition or other major news development. The rumors took hold when the company cancelled its presentation at a Citi investor conference. Although there are instances in the past where such an incident has led to an acquisition, such as in the case of Kythera, which cancelled its appearance at a conference only to announce its merger with Allergan PLC (NYSE:AGN) a few days later, there have also been instances where such an event didn’t lead to any tangible developments. ZS Pharma is focused on developing non-absorbed drugs to treat renal, cardiovascular, and metabolic diseases. Its main candidate ZS-9 is in Phase III development and treats hyperkalemia. The hedge fund sentiment around ZS Pharma Inc (NASDAQ:ZSPH) was positive during the second quarter as 22 firms had a total investment of $217.79 million in the company at the end of June as opposed to 20 funds with $185.84 million in shares at the end of March. Scopia Capital, which is managed by Matt Sirovich and Jeremy Mindich headed this list, even though it trimmed its holding by 6% during the June quarter to 924,800 shares valued at $48.45 million. On the heels of Scopia is Israel Englander‘s Millennium Management, which holds about 538,600 shares valued at $28.22 million.
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