Here’s Why Amsurg, Relypsa, FireEye, and Two More Stocks Are Trending on Thursday

All three index futures are in the red this morning as traders prepare for a potential ‘Brexit’ in the coming weeks. Although British voters could decide to remain in the EU, recent polls have pointed to the opposite outcome. If the U.K. leaves, financial markets could be more volatile than before. Among the stocks trending on Thursday morning are Amsurg Corp (NASDAQ:AMSG), Envision Healthcare Holdings Inc (NYSE:EVHC), Relypsa Inc (NASDAQ:RLYP), Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP), and FireEye Inc (NASDAQ:FEYE). Let’s take a closer look at the latest developments surrounding these stocks and see what investors from our database think about them.

We believe that imitating hedge funds and other large institutional investors can be helpful in identifying stocks capable of outperforming the broader market. Through extensive research that covered portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see the details here).

A and N photography/Shutterstock.com

A Big Merger in the Healthcare Sector

Amsurg Corp (NASDAQ:AMSG) and Envision Healthcare Holdings Inc (NYSE:EVHC) are tying the knot in an all-stock deal to from a combined organization with a pro-forma market cap of $10 billion and an enterprise value of $15 billion. After the deal is complete, Envision shareholders will own 53% of the combined company while Amsurg shareholders will own 47%. Management of both companies anticipate the deal to be accretive to adjusted earnings per share in 2017 and to potentially yield synergies of $100 million. The combined company will also have a strong balance sheet with anticipated net debt to adjusted EBITDA of 4.2x. Although the deal is supposed to be accretive, traders don’t seem to be big fans of the deal, with Envision shares down by around 7% in the pre-market, although Amusrg’s stock has inched up. Among the funds we track, 27 funds owned shares of Amsurg Corp (NASDAQ:AMSG) while 32 funds were long Envision Healthcare Holdings Inc (NYSE:EVHC) at the end of March.

On the next page, we examine Relypsa , Tonix Pharmaceuticals Holding Corp, and FireEye Inc.