Repros Therapeutics Inc (RPRX): Hedge Funds Are Bullish and Insiders Are Undecided, What Should You Do?
Is it smart to be bullish on Repros Therapeutics Inc (NASDAQ:RPRX)?
To many of your peers, hedge funds are viewed as bloated, outdated financial vehicles of a forgotten age. Although there are over 8,000 hedge funds trading currently, this site aim at the moguls of this club, around 525 funds. Analysts calculate that this group controls most of the hedge fund industry's total capital, and by paying attention to their highest performing investments, we've unsheathed a few investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we've began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Just as key, bullish insider trading sentiment is a second way to look at the investments you're interested in. Obviously, there are plenty of reasons for an upper level exec to sell shares of his or her company, but just one, very clear reason why they would initiate a purchase. Various empirical studies have demonstrated the valuable potential of this tactic if piggybackers understand what to do (learn more here).
Keeping this in mind, let's analyze the latest info for Repros Therapeutics Inc (NASDAQ:RPRX).
What have hedge funds been doing with Repros Therapeutics Inc (NASDAQ:RPRX)?
Heading into Q3, a total of 19 of the hedge funds we track were long in this stock, a change of 27% from one quarter earlier. With the smart money's sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their stakes significantly.
According to our 13F database, Baker Bros. Advisors, managed by Julian Baker and Felix Baker, holds the most valuable position in Repros Therapeutics Inc (NASDAQ:RPRX). Baker Bros. Advisors has a $51.3 million position in the stock, comprising 1% of its 13F portfolio. The second largest stake is held by Jacob Gottlieb of Visium Asset Management, with a $33.7 million position; 0.8% of its 13F portfolio is allocated to the company. Other hedge funds that are bullish include Christopher Medlock James's Partner Fund Management, Charles Davidson's Wexford Capital and Daniel Gold's QVT Financial.
As aggregate interest spiked, particular hedge funds have been driving this bullishness. Baker Bros. Advisors, managed by Julian Baker and Felix Baker, initiated the largest position in Repros Therapeutics Inc (NASDAQ:RPRX). Baker Bros. Advisors had 51.3 million invested in the company at the end of the quarter. Jacob Gottlieb's Visium Asset Management also initiated a $33.7 million position during the quarter. The other funds with brand new RPRX positions are Christopher Medlock James's Partner Fund Management, Charles Davidson's Wexford Capital, and Daniel Gold's QVT Financial.
How have insiders been trading Repros Therapeutics Inc (NASDAQ:RPRX)?
Insider buying made by high-level executives is best served when the company we're looking at has experienced transactions within the past six months. Over the latest six-month time period, Repros Therapeutics Inc (NASDAQ:RPRX) has experienced 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 Repros Therapeutics Inc (NASDAQ:RPRX). These stocks are PROLOR Biotech Inc (NYSEAMEX:PBTH), Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS), Cerus Corporation (NASDAQ:CERS), NewLink Genetics Corp (NASDAQ:NLNK), and XOMA Corp (NASDAQ:XOMA). All of these stocks are in the biotechnology industry and their market caps are similar to RPRX's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
PROLOR Biotech Inc (NYSEAMEX:PBTH)
Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS)
Cerus Corporation (NASDAQ:CERS)
NewLink Genetics Corp (NASDAQ:NLNK)
XOMA Corp (NASDAQ:XOMA)
Using the results explained by Insider Monkey's analyses, regular investors should always track hedge fund and insider trading sentiment, and Repros Therapeutics Inc (NASDAQ:RPRX) is no exception.