Do Hedge Funds and Insiders Love Akorn, Inc. (AKRX)?

Is Akorn, Inc. (NASDAQ:AKRX) a buy?

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What’s more, let’s examine the newest info about Akorn, Inc. (NASDAQ:AKRX).

Hedge fund activity in Akorn, Inc. (NASDAQ:AKRX)

Heading into Q3, a total of 13 of the hedge funds we track held long positions in this stock, a change of 63% from the first quarter. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their holdings meaningfully.

Akorn, Inc. (NASDAQ:AKRX)Out of the hedge funds we follow, Clough Capital Partners, managed by Charles Clough, holds the most valuable position in Akorn, Inc. (NASDAQ:AKRX). Clough Capital Partners has a $17 million position in the stock, comprising 0.6% of its 13F portfolio. The second largest stake is held by Sectoral Asset Management, managed by Jerome Pfund and Michael Sjostrom, which held a $10.7 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include James Dondero’s Highland Capital Management, Arthur B Cohen and Joseph Healey’s Healthcor Management LP and D. E. Shaw’s D E Shaw.

With a general bullishness amongst the titans, specific money managers have jumped into Akorn, Inc. (NASDAQ:AKRX) headfirst. Citadel Investment Group, managed by Ken Griffin, assembled the largest position in Akorn, Inc. (NASDAQ:AKRX). Citadel Investment Group had 59.8 million invested in the company at the end of the quarter. Charles Clough’s Clough Capital Partners also initiated a $17 million position during the quarter. The other funds with brand new AKRX positions are Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management, James Dondero’s Highland Capital Management, and Arthur B Cohen and Joseph Healey’s Healthcor Management LP.

How have insiders been trading Akorn, Inc. (NASDAQ:AKRX)?

Legal insider trading, particularly when it’s bullish, is most useful when the primary stock in question has seen transactions within the past half-year. Over the latest six-month time frame, Akorn, Inc. (NASDAQ:AKRX) 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 Akorn, Inc. (NASDAQ:AKRX). These stocks are Hi-Tech Pharmacal Co. (NASDAQ:HITK), Sagent Pharmaceuticals Inc (NASDAQ:SGNT), Ligand Pharmaceuticals Inc. (NASDAQ:LGND), Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP), and Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA). This group of stocks are the members of the drugs – generic industry and their market caps are similar to AKRX’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Hi-Tech Pharmacal Co. (NASDAQ:HITK) 9 0 0
Sagent Pharmaceuticals Inc (NASDAQ:SGNT) 12 0 0
Ligand Pharmaceuticals Inc. (NASDAQ:LGND) 11 0 0
Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) 24 0 0
Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) 21 0 0

Using the results shown by our strategies, average investors should always track hedge fund and insider trading activity, and Akorn, Inc. (NASDAQ:AKRX) is an important part of this process.

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