Many leading funds filed forms 13-D and 13-G (and form 4) with the SEC on in the past week (April 18th to 25th, 2012), indicating that they had amended their ownership in U.S. traded public companies. The following are the most notable institutional trades based on our analysis of those filings (for more info on Forms 13-D and 13-G, and how to interpret that, please refer to the end of this article):
Spectrum Pharmaceuticals (NASDAQ:SPPI) develops innovative therapies with a focus in the areas of hematology and oncology. On Monday, San Diego, CA-based life sciences focused investment firm Tang Capital Partners, with $429 million in 13-F assets, filed SEC Form SC 13G indicating that it holds 4.6 million or 7.7% of outstanding shares, an increase from the 1.8 million shares it held at the end of Q1 2012.
SPPI shares recently took a tumble after announcing that its phase 3 clinical trials of apaziquone for bladder cancer did not meet the primary endpoint of statistically significant difference in the rate of tumor recurrence, the same day it also announced that it way buying Allos Therapeutics (NASDAQ:ALTH) for $1.82/share in cash. Its shares are now down about 25% YTD, after a blockbuster 2011 during which share prices more than doubled.
In its most recent Q4, it missed analyst earnings estimates (24c v/s 28c), while revenues came in-line; its shares currently trade at 20-21 forward P/E and 3.3 P/B compared to averages of 22.8 and 4.8 respectively for its peers in the drug manufacturers group; however, earnings are expected to drop from $1.25 in 2011 to 89c in 2012 and 53c in 2013.
Health Management Association (NYSE:HMA) is an operator of acute care hospitals, primarily in non-urban communities in the southern U.S. On Monday, New York-based hedge fund Glenview Capital Management, headed by legendary manager Larry Robbins and with $5.0 billion in 13-F assets, filed SEC Form SC 13G indicating that it holds 12.8 million or 5.0% of outstanding shares, an increase from the 5.2 million shares that it held at the end of Q4.
HMA shares have traded down after it reported its Q1 (March) report on Monday, in which it beat analyst earnings estimates (24c v/s 22c), but came up short on revenue ($1.49 billion v/s $1.61 billion), while reaffirming FY 2012 EPS guidance. Its shares are flat YTD, but that after a disastrous 2011 in which its shares pulled back 23%. Its shares currently trade at 7 forward P/E and 2.3 P/B compared to averages of 10.4 and 2.3 for its peers in the medical hospitals group, while earnings are projected to increase at 7.9% annual rate from 85c in 2011 to 99c in 2013.
Integrated Device Technology (NASDAQ:IDTI) manufactures a range of integrated circuits for communications, computing and consumer markets worldwide. On Thursday, New York-based investment adviser Starboard Value LP, that is focused on opportunities in small-cap space, primarily in the tech sector, filed SEC Form SC 13D indicating that it holds 9.2 million or 6.5% of outstanding shares, a new position in its portfolio. IDTI shares trade at a current 14 P/E and 1.5 P/B compared to averages of 17.6 and 1.5 for its peers in the electronic components - semiconductors group. The company is scheduled to release its Q1 (March) earnings on Monday, April 30th, after the close of market.
Other major institutional filings in the past week included:
- Ardea Biosciences Inc. (NASDAQ:RDEA), a clinical-stage biotech company focused on the discovery and development of small-molecule therapeutics for the treatment of gout and cancer in the U.S., currently in a definitive agreement to be acquired by Astrazeneca Plc (NYSE:AZN), in which Tang Capital Partners (see above) filed SEC Form SC 13D/A indicating that it holds 4.1 million or 11.1% of outstanding shares, an increase from the 3.9 million shares it held at the end of Q1 2012; and
- Neostem Inc. (NBS), which develops proprietary cellular therapies based on adult stem cells in oncology, immunology and regenerative medicines in the U.S. and China, in which healthcare-focused Sabby Management, headed by Hal Mintz, and with $44 million in 13-F assets at the end of the latest available Q3, filed SEC Form SC 13G indicating that it holds 7.5 million or 5.8% of outstanding shares.
Credit: Fundamental data in this article were based on SEC filings, Zacks Investment Research, Thomson Reuters and Briefing.com. The information and data is believed to be accurate, but no guarantees or representations are made.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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