Why Are These Five Stocks In Spotlight Today?

U.S. equities inched up on Monday after fresh data displayed that consumer spending rose marginally in February. The Commerce Department revealed that consumer spending, which makes up more than two-thirds of the nation’s Gross Domestic Product figure, increased 0.1% last month, after a downwardly revised-increase of 0.1% registered for January. The somewhat promising U.S. economic data suggests that the world’s largest economy continues to grow despite facing various global headwinds. Leaving this discussion aside, let’s take a look at five companies that have been making headlines today.

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According to Reuters, Microsoft Corporation (NASDAQ:MSFT) has held discussions with private equity firms interested in buying Yahoo! Inc. (NASDAQ:YHOO)’s core Internet business with regard to the financing of a possible deal. Assuming that the software giant is thinking about contributing to any possible plans to acquire Yahoo!, it is quite evident that Microsoft is looking forward to preserve its long-lasting relationship with the struggling Internet company. Although Microsoft Corporation (NASDAQ:MSFT) may not be planning to make a direct bid for Yahoo!’s core businesses, it appears that the software company is set to play a decisive role in making Jeffrey Smith’s intentions come true. Let us remind you that Mr. Smith’s Starboard Value LP recently announced the nomination of a slate of nine candidates for election to Yahoo! Inc. (NASDAQ:YHOO)’s Board of Directors at the company’s upcoming annual meeting of shareholders, in an attempt to speed up the seemingly imminent sale of Yahoo!’s core Search and Display advertising businesses.

Shares of Yahoo! surged in today’s pre-market trading session, but have retreated since the opening bell. According to various fresh reports, Yahoo! is seeking to get around $10 billion for its soon-to-be sold core businesses, but most investors and analysts value the company’s digital business and advertising platforms at around $6 billion to $8 billion. A total of 84 hedge funds from our system had stakes in Yahoo! at the end of December 2015, accumulating almost 19% of the company’s outstanding common stock. Starboard Value owns 7.10 million shares of Yahoo! Inc. (NASDAQ:YHOO) as of December 31.

Shares of Qlik Technologies Inc. (NASDAQ:QLIK) are up by 7% in today’s trading session, following a Reuters report saying that the software company has started to explore strategic alternatives, which include a possible sale. This move comes after Paul Singer’s Elliott Management and its affiliates disclosed combined economic exposure in Qlik Technologies of roughly 8.88% through a Schedule 13D filing submitted with the SEC earlier this month. Mr. Singer and his team voiced their belief that the company’s shares are severely undervalued, saying that “the Issuer operates in a highly strategic area of the technology industry with an attractive competitive position and a compelling product set, the value of which is not reflected in the Issuer’s current market value”. What’s more, Elliott said that there are both strategic and operational opportunities for Qlik Technologies Inc. (NASDAQ:QLIK) that would significantly increase shareholder value, which had already been discussed with the company’s management and Board of Directors. As stated in the report posted by Reuters, the visual analytics solutions provider is allegedly working with Morgan Staley to explore a possible sale, while Oracle Corporation (NYSE:ORCL) and International Business Machines Corp. (NYSE:IBM) are believed to be among the possible buyers for the company. Despite the recent rally, shares of Qlik are down by 9% since the beginning of 2016. There were 36 top money managers tracked by Insider Monkey with positions in Qlik at the end of 2015, stockpiling roughly 26% of the company’s outstanding shares. Kerr Neilson’s Platinum Asset Management reported owning 4.02 million shares of Qlik Technologies Inc. (NASDAQ:QLIK) in its 13F filing for the December quarter.

ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) has seen its stock advance by more than 21% in today’s trading session, mainly because of a positive note in the U.S. Food and Drug Administration’s briefing documents for the biopharmaceutical company’s Parkinson’s disease psychosis (PDP) drug candidate, known as NUPLAZID (pimavanserin). ACADIA submitted a New Drug Application to the FDA for NUPLAZID for the treatment of psychosis associated with Parkinson’s disease in September 2015, with the FDA’s Psychopharmacologic Drugs Advisory Committee being scheduled to hold an Advisory Committee meeting discussing on the risk-benefit profile of this product candidate on March 29 (tomorrow). Going back to the freshly-reveled briefing documents, the FDA stated that “Although the Division usually requires evidence of efficacy from more than one positive, adequate, and well-controlled trial, it is within our authority to rely on one robustly positive trial, especially when we have supportive evidence from the early part of the development program.” ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)’s drug candidate has the potential to be the first FDA-approved drug for the aforementioned condition. It should be noted that Parkinson’s disease is the second most common neurodegenerative disorder, trailing only the Alzheimer’s disease. As revealed by the National Parkinson Foundation, there are approximately one million individuals suffering from this disease in the United States and roughly four-to-six million people globally. What’s more, as Parkinson’s disease is mostly common among people aged 60 and above, the prevalence of this disease is anticipated to continue growing at a high pace along with the aging population in the years ahead. A total of 24 investment firms from our system had stakes in ACADIA at the end of December 2015, amassing 26% of its outstanding shares. Baker Bros. Advisors, managed by Julian and Felix Baker, owned 20.48 million shares of ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) at the end of 2015.

Shares of GameStop Corp. (NYSE:GME) plummeted drastically on Thursday, after the video game retailer released its fourth-quarter earnings report, but the company recouped the pre-market loss during the trading session. The company generated total global sales of $3.53 billion during the fourth quarter that ended January 30, increasing by 1.4% (or 5.3% in constant currency) year-on-year. The increase was mainly driven by higher sales of non-physical gaming products, including digital, mobile and consumer electronics, and collectibles, which was offset by a decline in new software sales. GameStop Corp. (NYSE:GME)’s fourth-quarter net earnings totaled $247.8 million, or $2.36 per share, up from $244.1 million, or $2.23 per share, reported for the same period of the prior year. More importantly, the company anticipates total sales to decline in the range of 4%-to-7% in the current quarter, while comparable sales are expected to drop in the range of 7.0% to 9.0%. GameStop expects diluted earnings per share in the range of $0.58 to $0.63 per share for the current quarter. Analysts surveyed by Thomson Reuters had previously anticipated first-quarter sales to grow 1% year-on-year and expected earnings per share of $0.71. For the 2016 fiscal year, the company’s management anticipates diluted EPS in the range of $3.90-to-$4.05, while total sales are expected to grow in the range of 0%-to-3%. The hedge fund sentiment towards GameStop increased in the fourth quarter, as the number of funds with stakes in the company climbed to 36 from 31 quarter-on-quarter. Cliff Assness’ AQR Capital Management owns 2.42 million shares of GameStop Corp. (NYSE:GME) as of the end of the fourth quarter.

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