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.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!