According to a recent filing with the Securities and Exchange Commission, Steven Boyd‘s Armistice Capital initiated a position in Pernix Therapeutics Holdings Inc (NASDAQ:PTX) by acquiring some 3.4 million shares valued at $18.97 million, according to the current stock price. The holding amasses about 5.7% of the company’s outstanding common stock. So far this year, shares of the $252.10 million specialty pharmaceutical company have slid by more than 40%, a stark contrast to almost 22% gains for the Specialty & Generic drug manufacturing industry.
Professional money managers have been taking an increased interest in Pernix Therapeutics Holdings Inc (NASDAQ:PTX). Among the hedge funds that we track, 19 had invested a total of $124.90 million in the company at the end of March, as compared to 13 funds with $113.96 million at the end of the previous quarter. Interestingly, though total ownership jumped by nearly 50%, the aggregate capital held by the funds actually declined slightly when we factor out the appreciation of the stock during first quarter, which certainly sent some mixed signals as far as hedge funds’ sentiment.
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Insider trading, especially insider purchases can provide extremely useful information related to the company’s future prospects, and that is why we keep a close eye on such transactions. As far as Pernix Therapeutics Holdings Inc (NASDAQ:PTX) is concerned, Douglas Drysdale, the company’s CEO, and Sanjay Patel, who is Pernix’s CFO, bought 16,000 and 2,000 shares respectively last month, while no insider sales have been registered this year.