Here’s Why These Five Stocks Are on the Move Today

Although the Federal Reserve didn’t hike rates yesterday, the markets are still on edge given the Brexit vote on the 23rd. All three indexes and crude futures are in the red, and the VIX is above 20. Among the stocks buzzing today are TravelCenters of America LLC (NYSE:TA), Citigroup Inc (NYSE:C), QLogic Corporation (NASDAQ:QLGC), Cavium Inc (NASDAQ:CAVM), and Nu Skin Enterprises, Inc. (NYSE:NUS). Let’s find out why each stock is in the spotlight today, and use the latest round 13F filings to see how smart money investors from our database are positioned towards them.

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TravelCenters of America Rallies on Rumors

TravelCenters of America LLC (NYSE:TA) surged by 23% on heavy volume yesterday and is up modestly in extended market trading today after rumors broke that the company rejected a $14 per share acquisition offer from Golden Gate Capital last December. According to the Wall Street Journal, the private equity firm could be still interested in an acquisition despite the rejection.  The article was enough to send shares of the TravelCenters rallying. Whether a deal ultimately comes out of the rumors is unknown, seeing as Golden Gate Capital isn’t interested in going hostile at the moment. 8 top funds owned shares of TravelCenters of America LLC (NYSE:TA) at the end of March.

Fitch Reaffirms Citigroup Debt Rating

Citigroup Inc (NYSE:C) is in the news after credit ratings agency Fitch reaffirmed the company’s ‘A’ long-term credit rating. Analysts at Fitch cited Citigroup’s robust capital and liquidity levels and the company’s dedication to becoming a simpler and safer bank as reasons for the affirmation. Citigroup shares have retraced recently due to Brexit fears and the Fed’s decision to keep interest rates lower for longer. Shares have upside in the long term as interest rates normalize and emerging markets continue to grow. A total of 101 funds had a long position in Citigroup Inc (NYSE:C) at the end of March, down by five funds from the previous quarter.

On the next page, we examine QLogic Corporation, Cavium, and Nu Skin Enterprises.

M&A in the Server/Semiconductor Industry

Cavium Inc (NASDAQ:CAVM) has agreed to acquire QLogic Corporation (NASDAQ:QLGC) for $11 per share in cash and 0.098 shares of Cavium common stock for each share of QLogic common stock, for a net value of around $15.50 per share based on the weighted average trading price of Cavium for the three trading days beginning June 10. The transaction has an enterprise value of $1 billion and should produce annualized cost synergies of $45 million by the end of 2017. Management believes the merger will be $0.60 to $0.70 accretive to Cavium’s 2017 adjusted EPS. Cavium shares are down by 7% and QLogic shares have gained around 12% on the back of the news. At the end of March, 16 funds from our database were long Cavium Inc (NASDAQ:CAVM) and 23 funds had stake in QLogic Corporation (NASDAQ:QLGC), according to the latest round of 13F filings.

Nu Skin Gets Strategic Investment

Nu Skin Enterprises, Inc. (NYSE:NUS) shares are in the green this morning after Ping An Securities and several other investors affiliated with ZQ Capital Limited agreed to make a $210 million strategic investment in the company by buying 4.75%, four-year convertible senior notes with an initial conversion price of $46.50 per share. Nu Skin will use the proceeds to buy back stock and to invest in its Chinese operations. The company also said it anticipates its second quarter revenue to be in the high end or slightly above the previous guidance of $560 million to $580 million. Among the funds we track, 15 funds owned $107.92 million worth of Nu Skin Enterprises, Inc. (NYSE:NUS)’s stock, which accounted for 5.10% of the float on March 31, versus 19 funds and $111.81 million, respectively, a quarter earlier.

Disclosure: none