Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA): Insiders Are Dumping, Should You?

Is Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) a healthy stock for your portfolio? Money managers are reducing their bets on the stock. The number of bullish hedge fund positions dropped by 2 in recent months.

Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA)

In the 21st century investor’s toolkit, there are plenty of gauges shareholders can use to watch the equity markets. A couple of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite fund managers can outpace the S&P 500 by a superb margin (see just how much).

Just as important, positive insider trading activity is another way to parse down the investments you’re interested in. Just as you’d expect, there are plenty of stimuli for a bullish insider to get rid of shares of his or her company, but only one, very clear reason why they would behave bullishly. Several empirical studies have demonstrated the impressive potential of this method if piggybackers understand where to look (learn more here).

With these “truths” under our belt, it’s important to take a glance at the latest action encompassing Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA).

How are hedge funds trading Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA)?

At year’s end, a total of 19 of the hedge funds we track held long positions in this stock, a change of -10% from the third quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes meaningfully.

According to our comprehensive database, Sectoral Asset Management, managed by Jérôme Pfund and Michael Sjöström, holds the largest position in Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA). Sectoral Asset Management has a $77 million position in the stock, comprising 2.7% of its 13F portfolio. On Sectoral Asset Management’s heels is Third Point, managed by Dan Loeb, which held a $48 million position; 0.2% of its 13F portfolio is allocated to the company. Some other hedgies that are bullish include Julian Baker and Felix Baker’s Baker Bros. Advisors, Steven Cohen’s SAC Capital Advisors and Phill Gross and Robert Atchinson’s Adage Capital Management.

Since Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) has experienced declining sentiment from the aggregate hedge fund industry, it’s easy to see that there lies a certain “tier” of hedgies that decided to sell off their full holdings heading into 2013. It’s worth mentioning that Andreas Halvorsen’s Viking Global cut the largest investment of the “upper crust” of funds we key on, valued at about $47 million in stock., and Wayne Holman of Ridgeback Capital Management was right behind this move, as the fund cut about $24 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest fell by 2 funds heading into 2013.

What do corporate executives and insiders think about Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA)?

Insider purchases made by high-level executives is best served when the primary stock in question has seen transactions within the past half-year. Over the last six-month time frame, Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) has experienced zero unique insiders buying, and 8 insider sales (see the details of insider trades here).

With the results demonstrated by Insider Monkey’s research, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) applies perfectly to this mantra.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!