With April coming to a close on Thursday, it is time for yet another rebalancing of some of the biggest indexes on Wall Street. At the close on Thursday, the Russell 2000 and the Russell 1000 will have enormous buy and sell orders hit the tape as the stocks in the indexes are rebalanced to represent the proper current weighting.
The quantitative strategy desk at Jefferies scanned the indexes for the allocation changes. The screening generated a list of buy and sell candidates, presented in a research note. We screened the Jefferies list for the stocks being purchased on the close that will have the highest share counts.
New Residential Investment Corp. (NYSE: NRZ) leads off the list, and a ton of shares will hit on the close Thursday, which may add to the red-hot performance since February. The Jefferies team estimates a gigantic order of 4,230,715 shares will be bought. The company is a real estate investment trust (REIT) focused on investing in and managing residential mortgage related assets. It operates through Servicing Related Assets, Residential Securities and Loans, and Other Investments segments. The stock closed Tuesday at $17.32.
Coeur Mining Corp. (NYSE: CDE) is a gold and silver stock that will see some big buying on the close Thursday. The Jefferies team anticipates that 2,373,595 shares of the miner will be bought. The company is involved in the ownership, operation, exploration and development of silver and gold mining properties, primarily in the United States, Mexico, Bolivia, Argentina, Australia, Ecuador, Chile and New Zealand. The stock closed Tuesday at $5.65.
Novavax Inc. (NASDAQ: NVAX) has been a very hot biotech stock and will see significant buying on the close Thursday. Jefferies thinks that a whopping 2,174,524 of the shares will be bought. We recently featured the company as one with explosive upside potential. The stock closed the trading day on Tuesday at $8.18.
Cypress Semiconductor Corp. (NASDAQ: CY) is technology stock that will see a dramatic increase in the shares traded with a big buy order for Thursday. Jefferies estimates that a block of 1,803,100 shares will hit the buy tape on the close. Cypress Semiconductor provides mixed-signal programmable solutions, specialized semiconductor memories and integrated semiconductor solutions worldwide. Shares ended the day Tuesday priced at $12.93.
Jetblue Airways Corp. (NASDAQ: JBLU) posted outstanding earnings this week, and shareholders will be even more pleased when they learn that an estimated 1,005,867 shares of the airline are set to be bought for the index. We took a look at the airline’s impressive earnings report. Shares closed the day Tuesday at $21.02 up over 6.5%.
While the purchases will come as no to surprise to many, they help to put a floor under stocks’ pricing. Investors looking to sell shares in any of these companies may want to put in sell-on-close orders to match up with the heavy buying.
24/7 Wall St. would like to remind readers that exchange traded fund and actual index managers have much more set guidelines than many managers who track or try to game the system. That also means that not everyone acts solely on the day of the formal index change. Some orders get done ahead of time, and some trickle in for days after the actual event.