Here’s Why These Five Stocks Are On the Move on Wednesday

On the second to last day before the end of the quarter, all three indexes and crude futures are higher.

Among the stocks showing more volatility than usual are TESARO Inc (NASDAQ:TSRO), Clovis Oncology Inc (NASDAQ:CLVS), PrivateBancorp Inc (NASDAQ:PVTB), Southwestern Energy Company (NYSE:SWN), and Blue Buffalo Pet Products Inc (NASDAQ:BUFF). Let’s find out why traders are watching these stocks and analyze what the smart money thinks about each stock.

While there are many metrics that investors can assess in the investment process, the hedge fund sentiment is something that is often overlooked. However, hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor to beat the S&P 500 by around 95 basis points per month (see the details here).

TESARO Surge on Study Results

TESARO Inc (NASDAQ:TSRO) shares have more than doubled out of the gate after a phase 3 clinical trial showed that the company’s product candidate Niraparib significantly improved the progression-free survival metric for patients with ovarian cancer. The drug successfully achieved its primary endpoint in patients who are germline BRCA mutation carriers, among patients who are not germline BRCA mutation carriers but who have homologous recombination deficient tumors, and overall in patients who are not germline BRCA mutation carriers. TESARO plans to file an NDA and MAA for the drug in the fourth quarter of 2016. Of the 766 elite funds we track, 19 funds owned $281.63 million worth of TESARO Inc (NASDAQ:TSRO)’s stock, which accounted for 15.90% of the float on March 31, versus 16 funds and $308.68 million, respectively, a quarter earlier.

Clovis Rallies on TESARO’s Coattails

Clovis Oncology Inc (NASDAQ:CLVS)’s stock has surged by 18% today as some traders pile into the stock due to TESARO’s positive Phase 3 clinical trial results. As mentioned earlier, TESARO’s product candidate Niraparib, a PARP inhibitor, significantly improved the progression-free survival metric for patients with ovarian cancer in a Phase 3 trial. Clovis’ rucaparib is a PARP inhibitor too. A total of 24 funds tracked by us were long Clovis Oncology Inc (NASDAQ:CLVS) at the end of the first quarter, unchanged from the previous quarter.

On the next page, we examine PrivateBancorp, Southwestern Energy Company, and Blue Buffalo Pet Products.

PrivateBancorp Sells Itself

PrivateBancorp Inc (NASDAQ:PVTB) is 23% in the green today after the bank agreed to sell itself to CIBC for $18.80 in cash and 0.3657 of CIBC common shares for each share of PrivateBancorp common stock. Based on June 28 prices, that translates to a total transaction value of $3.8 billion, or $47 per share. CIBC is buying PrivateBancorp to expand its American presence. Among the funds we track, 16 funds owned shares of PrivateBancorp Inc (NASDAQ:PVTB) at the end of the first quarter. Among them was Ken Fisher’s Fisher Asset Management with more than 1.4 million shares.

Southwestern Retreats on Share Offering

Although crude prices are in the green today, Southwestern Energy Company (NYSE:SWN) is over 6% lower on the back of a planned offering of 75 million common shares. In addition, the company has granted underwriters a traditional 30-day option to buy another 11.25 million shares of its common stock. Southwestern plans to use some of the proceeds to repay $375 million of a $750 million term loan and for general corporate purposes. A total of 28 funds from our database owned shares of Southwestern Energy Company (NYSE:SWN) at the end of March, down by four funds from the previous quarter.

Blue Buffalo Prices Offering

Blue Buffalo Pet Products Inc (NASDAQ:BUFF) is in the spotlight after the company priced its secondary offering of 15 million shares at $22 a piece. The underwriters of the deal have the customary 30-day option to buy an additional 2.25 million shares at $22 per share as well. The secondary offering is from existing stockholders of Blue Buffalo and not from the company itself. At the end of the first quarter, 12 funds owned shares of Blue Buffalo Pet Products Inc (NASDAQ:BUFF), down by four funds from the previous quarter.

Disclosure: none