Hedge Funds Are Crazy About Alkermes Plc (ALKS)
What's a smart Alkermes Plc (NASDAQ:ALKS) investor to do?
In the financial world, there are plenty of indicators shareholders can use to watch stocks. A couple of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best hedge fund managers can trounce the broader indices by a healthy margin (see just how much).
Equally as crucial, optimistic insider trading activity is a second way to analyze the marketplace. Obviously, there are plenty of motivations for a corporate insider to sell shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the useful potential of this tactic if shareholders know where to look (learn more here).
Thus, we're going to study the recent info surrounding Alkermes Plc (NASDAQ:ALKS).
How are hedge funds trading Alkermes Plc (NASDAQ:ALKS)?
Heading into Q3, a total of 20 of the hedge funds we track were bullish in this stock, a change of 33% from one quarter earlier. With the smart money's positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their stakes meaningfully.
Out of the hedge funds we follow, Arthur B Cohen and Joseph Healey's Healthcor Management LP had the largest position in Alkermes Plc (NASDAQ:ALKS), worth close to $23.7 million, accounting for 1.4% of its total 13F portfolio. Sitting at the No. 2 spot is Millennium Management, managed by Israel Englander, which held a $22.8 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other hedgies that are bullish include Jim Simons's Renaissance Technologies, Kevin Kotler's Broadfin Capital and Brian Ashford-Russell and Tim Woolley's Polar Capital.
As industrywide interest increased, specific money managers were leading the bulls' herd. Healthcor Management LP, managed by Arthur B Cohen and Joseph Healey, established the most outsized position in Alkermes Plc (NASDAQ:ALKS). Healthcor Management LP had 23.7 million invested in the company at the end of the quarter. Israel Englander's Millennium Management also initiated a $22.8 million position during the quarter. The other funds with brand new ALKS positions are Jim Simons's Renaissance Technologies, Kevin Kotler's Broadfin Capital, and Brian Ashford-Russell and Tim Woolley's Polar Capital.
What do corporate executives and insiders think about Alkermes Plc (NASDAQ:ALKS)?
Insider buying is at its handiest when the company in focus has seen transactions within the past six months. Over the latest 180-day time period, Alkermes Plc (NASDAQ:ALKS) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll also take a look at the relationship between both of these indicators in other stocks similar to Alkermes Plc (NASDAQ:ALKS). These stocks are Delcath Systems, Inc. (NASDAQ:DCTH), Petmed Express Inc (NASDAQ:PETS), Valeant Pharmaceuticals Intl Inc (NYSE:VRX), Elan Corporation, plc (ADR) (NYSE:ELN), and Hospira, Inc. (NYSE:HSP). All of these stocks are in the drug delivery industry and their market caps match ALKS's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
Delcath Systems, Inc. (NASDAQ:DCTH)
Petmed Express Inc (NASDAQ:PETS)
Valeant Pharmaceuticals Intl Inc (NYSE:VRX)
Elan Corporation, plc (ADR) (NYSE:ELN)
Hospira, Inc. (NYSE:HSP)
Using the results explained by the previously mentioned tactics, regular investors should always keep one eye on hedge fund and insider trading activity, and Alkermes Plc (NASDAQ:ALKS) is no exception.