TerraForm Power Inc (TERP) and Three Other Stocks Trading Higher on Positive News; Community Health Systems (CYH) Plunges

Markets are trading higher today, following the global trends and higher oil prices. The US dollar has also weakened as investors mainly bet that the Federal Open Market Committee, which is scheduled to meet this week, is not likely to raise interest rates.

A number of stocks are registering significant moves on the back of various developments. In this article, let’s take a closer look at the latest news surrounding TerraForm Power Inc (NASDAQ:TERP), TerraForm Global Inc (NASDAQ:GLBL),NovaBay Pharmaceuticals Inc. (NYSEMKT:NBY), Kohl’s Corporation (NYSE:KSS) and Community Health Systems (NYSE:CYH). In addition, we are going to assess the hedge fund sentiment towards these stocks.

At Insider Monkey, we track around 740 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details about our small-cap strategy).

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NovaBay Pharmaceuticals Inc. (NYSEMKT:NBY)’s stock is currently trading over 9% higher after the company reported that data from a Phase 2b clinical study with Auriclosene Irrigating Solution (AIS) demonstrated statistically significant and clinically meaningful results. The drug is meant to prevent urinary catheter blockage and encrustation in subjects with chronic indwelling urinary catheters who have repeat history of blockage. Auriclosene has been designated as a new chemical entity. AIS has been granted composition of matter patent protection by the U.S. Patent Office. 

Two spinoffs of SunEdison, TerraForm Power Inc (NASDAQ:TERP) and TerraForm Global Inc (NASDAQ:GLBL) are both trading in the green on the back of their announcement that they are exploring different options to unlock shareholder value, including a potential sale of their businesses or a merger. Both companies have signed confidentiality agreement with its former parent company, SunEdison, which is currently going through bankruptcy and might need bankruptcy court approval regarding its decision how to vote its shares in both companies, should a sale or merger decision come up for vote. Among the funds we track, 26 funds held $304 million worth of TerraForm Power Inc (NASDAQ:TERP)’s stock in aggregate at the end of June, having amassed 19.90% of its outstanding stock, compared to 29 investors that held $353 million worth of shares a quarter earlier. Similarly, 16 funds held shares of TerraForm Global Inc (NASDAQ:GLBL) with a total value of $110 million at the end of June, compared to $81 million held by 23 funds a quarter earlier.

Kohl’s Corporation (NYSE:KSS)’s shares are trading slightly in the green as the company announced its plans to add more than 69,000 seasonal workers to cope with the business volume during this holiday season. The company had hired the similar number during the previous holiday season as well. These hires will help out for both online as well as offline segments of the business. A total of 28 funds from our database have positions in Kohl’s Corporation as of the end of June, compared to 27 investors that had held shares a quarter earlier.

Community Health Systems (NYSE:CYH)’s stock has declined by around 6% so far today. Earlier today the company has confirmed the rumors about its potential sale that emerged earlier (see article). The company said in a statement that it is currently considering its options and that “the discussions are at a very preliminary stage and there is no timeline established for this review.” The company added that it is not likely to make any further public comments during the exploration process. A total of 33 funds we track held about $280 million worth of Community Health Systems (NYSE:CYH) shares at the end of the second quarter, down from 42 funds holding $493 million worth of stock at the end of March.

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