Monday, August 10, 2009

Federated Investors ups the ante on ARNA

According to this SEC filing, Federated Investors increased their holdings from 10,934,434 million shares to 16,203,127 shares, which enables them to establish a huge stake in the company, a 17.49% ownership position.

I did a quick search of institutional buying and selling during ARNA's last pivotal event when they announced BLOOM results on weight loss. Shares took a major hit as Wall Street analysts misinterpreted positive data release, deeming average weight loss for Lorcaserin-active groups as underwhelming. Sellers on March 31 were knee-jerk sellers in other words, and downright wrong--in hindsight. In my search, I noticed the following buyers and sellers of ARNA after the pivotal event.

Sellers (over 100,000 shares): William Harris Investors, Tradelink, Columbia Wanger, Royce & Associates, Barclay's Global UK, Noonday Asset, Janus, DE Shaw, Vanguard, Merrill Lynch, Oppenheimer, Bank of America, I-shares Russell 2000.

Buyers (over 100,000 shares): Rock Point, Fortis, BbBiotech, RBC Capital, Wellington Management, Susquehanna, UBS, Jane Street, Knight Capital, Federated.

With the luxury of hindsight, at today's current price per share, clearly the buyers on March 31 were correct in buying the dip.

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