Hedge Funds’ Favorite Stocks That Have RSI’s Under 30

#3. Synergy Pharmaceuticals Inc. (NASDAQ:SGYP)

 – Hedge Funds With Long Positions (as of March 31): 21

 – Aggregate Value of Hedge Funds’ Holdings (as of March 31): $73.66 Million

 – 14-Day RSI: 6.55

Synergy Pharmaceuticals Inc. (NASDAQ:SGYP) lost some favor with the hedge fund vehicles followed by Insider Monkey during the first quarter, as the number of funds invested in the company dropped to 21 from 24 quarter-over-quarter. The total value of those funds’ equity investments in the company also plunged by 49% during the quarter to $73.66 million, though this was primarily due to a drop of 51% in the value of Synergy’s shares. A possible investment in the biopharmaceutical company appears to be a binary option at the moment, as the company’s future prospects fully rely on drug candidate plecanatide for the treatment for chronic idiopathic constipation (CIC). Synergy Pharmaceutical filed its first new drug application (NDA) in January and anticipates the FDA’s decision in late January 2017. The company also plans to file its second NDA for plecanatide for the treatment of irritable bowel syndrome with constipation (IBS-C) by the end of the year. Steven Boyd’s Armistice Capital acquired a new stake of 2.20 million shares of Synergy Pharmaceuticals Inc. (NASDAQ:SGYP) during the March quarter.

#2. Babcock & Wilcox Enterprises Inc. (NYSE:BW)

 – Hedge Funds With Long Positions (as of March 31): 26

 – Aggregate Value of Hedge Funds’ Holdings (as of March 31): $315.29 Million

 – 14-Day RSI: 14.99

Babcock & Wilcox Enterprises Inc. (NYSE:BW) has received more attention from the elite segment of the hedge fund industry tracked by our team, as the number of hedge funds in our system with stakes in the company spiked to 26 from 22 during the first quarter of 2016. On the other hand, the aggregate value of those stakes fell by nearly 10% to $315.29 million, even as the stock was up by 3% in the first quarter. The shares of the power generation company have since tanked, by 31% in the past month after the company cut its 2016 earnings outlook and unveiled plans to restructure its coal-fired power generation business on reduced expectations for coal-fired electricity generation. Babcock & Wilcox Enterprises said the restructuring of its traditional power business involves the elimination of more than 200 jobs in North America, as well as other cost reduction initiatives. Mariko Gordon’s Daruma Capital Management had 2.50 million shares of Babcock & Wilcox Enterprises Inc. (NYSE:BW) in its equity portfolio at the end of March.

#1. Rite Aid Corporation (NYSE:RAD)

  – Hedge Funds With Long Positions (as of March 31): 52

  – Aggregate Value of Hedge Funds’ Holdings (as of March 31): $960.22 Million

  – 14-Day RSI: 7.16

Rite Aid Corporation (NYSE:RAD) received some love from the money managers monitored by Insider Monkey during the January-to-March period, with the number of managers invested in the company rising to 52 from 47 quarter-over-quarter. However, the value of those managers’ equity positions in the company fell by 22% to $960.22 million, even though Rite Aid’s shares gained 5%. In late 2015, the full-service pharmacy retail healthcare company announced that it had agreed to be acquired by rival Walgreens Boots Alliance Inc. (NASDAQ:WBA) for $9.4 billion in cash. The deal would combine the second- and third-largest drugstore chains in the United States. Although the climate for U.S regulatory reviews of mergers has been tough as of late, the acquirer’s executives are confident that the $9.4 billion-proposed acquisition will go through. Rite Aid shares are currently trading significantly below Walgreens’ offer of $9 per share, reflecting investor worries that the transaction may not receive the necessary approval from regulators. Matthew Halbower’s Pentwater Capital Management owns 14.00 million shares of Rite Aid Corporation (NYSE:RAD) as of March 31.

Disclosure: None