Why These 5 Stocks Are Experiencing Big Rallies on Wednesday

Wall Street is trading in negative territory ahead of the Fed’s policy decision later today and oil prices retreating again, after lifting above $30 per barrel yesterday. However, some stocks are moving higher. Among the gainers today are Citizens Financial Group Inc (NYSE:CFG), Transenterix Inc (NYSEMKT:TRXC), CommVault Systems, Inc. (NASDAQ:CVLT), Hawaiian Holdings, Inc. (NASDAQ:HA), and Terex Corporation (NYSE:TEX) as investors buy each stock for various reasons. In the following article, we will examine each stock in-depth, including what hedge funds think of each.

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The first on the list is Citizens Financial Group Inc (NYSE:CFG), whose shares are nearly 5.5% higher despite Zacks Investment Research having downgraded the company to ‘Sell’ from ‘Hold’. Moreover, two days ago analysts at Compass Point cut their price target on the stock to $33 per share from $30 per share. Nonetheless, investors are bullish on the news that following the market close on Jan. 29, the company will replace Precision Castparts in the S&P 500, with the latter’s acquisition by Berkshire Hathaway closing at that time.

During the third quarter, Citizens Financial Group Inc (NYSE:CFG) saw an increase in popularity among the funds we track, with 56 investors holding long positions at the end of September, well up from 38 funds a quarter earlier. Ken Griffin‘s Citadel Investment Group was the largest shareholder among those 56, with 10.65 million shares valued at $254.2 million at the end of September.

Moving on, Transenterix Inc (NYSEMKT:TRXC) shares are up by 33% today as investors are speculating that the company could be acquired by Johnson & Johnson (NYSE:JNJ). It should be stressed that there has been no official confirmation of discussions between the sides, though JNJ’s CEO recently hinted that a deal to purchase an unnamed company was in the works.

Transenterix Inc (NYSEMKT:TRXC) lost popularity in the third quarter of 2015, as out of the 730 funds that we track, ten funds held shares of the company on September 30, down from 13 funds on June 30. Among the believers is Dennis Purcell‘s Aisling Capital, who was the largest shareholder of Transenterix in our system, holding an $18.8 million position at the end of September.

CommVault Systems, Inc. (NASDAQ:CVLT)’s stock has opened nearly 14% higher on the back of the company posting its financial results for the third quarter of its fiscal year 2016. For the quarter ended December 31, CommVault Systems reported annual revenue growth of 2% to $155.70 million, while its profit advanced to $0.28 per share from $0.15 per diluted share for the second quarter of fiscal year 2016. In addition, the New Jersey-based company delivered flat year-over-year growth in Software revenue, which reached $71.4 million, and a 4% year-over-year increase in Services revenue, which totaled $84.3 million for the fiscal third quarter.

The hedge fund sentiment has stayed steady in CommVault Systems, Inc. (NASDAQ:CVLT), as the number of funds long the stock remained unchanged at 22 during the third quarter. Among the investors long CommVault Systems at the end of the third quarter was First Eagle Investment Management with a holding of 1.60 million shares.

Next on our list is Hawaiian Holdings, Inc. (NASDAQ:HA), whose stock is well in the green after reporting its financial results for the fourth quarter and full year ended December 31, 2015. The company posted adjusted EPS of $0.85, which represents an increase of 112.5% year-over-year. The company’s revenue of $574.2 million was lower by 0.1% than the figure reported a year earlier however. Moreover, Hawaiian Holdings managed to beat EPS expectations by $0.01 and revenue expectations by $6.96 million. Analysts at Deutsche Bank upgraded the company to ‘Buy’ from ‘Hold’ and raised their price target on the company to $40 from $35 following the earnings announcement, suggesting that the stock has 8% upside potential.

Hawaiian Holdings, Inc. (NASDAQ:HA) also lost popularity among the investors that we track in the third quarter. 22 funds held shares of the company on September 30, down by two funds over the quarter. Among them, Zac Hirzel‘s Hirzel Capital Management was the largest shareholder, reporting ownership of 2.31 million shares in its latest 13F filing.

Last on our list is Terex Corporation (NYSE:TEX), whose stock has gained almost 8% today after the company confirmed that it has received a takeover offer from Zoomlion Heavy Industry Science and Technology Co. (Zoomlion) of China for $30 per share. Both companies entered into a confidentiality agreement while Terex is reviewing the bid. The deal needs U.S and Chinese regulatory approval, as well as Zoomlion shareholder approval.

During the third quarter, Terex Corporation (NYSE:TEX) registered a decrease in popularity among the funds that we track, with 23 investors holding long positions at the end of September, versus 28 funds a quarter earlier. Richard S. Pzena‘s Pzena Investment Management was the largest shareholder in Terex in our system, owning 4.34 million shares valued at $77.8 million at the end of September.

Disclosure: None