Is Impax Laboratories Inc (NASDAQ:IPXL) a good investment?
At the moment, there are tons of indicators shareholders can use to analyze publicly traded companies. A couple of the most under-the-radar 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 market by a very impressive amount (see just how much).
Equally as necessary, positive insider trading sentiment is a second way to analyze the investments you're interested in. Obviously, there are many motivations for a bullish insider to downsize shares of his or her company, but just one, very simple reason why they would buy. Many academic studies have demonstrated the market-beating potential of this method if piggybackers understand what to do (learn more here).
Keeping this in mind, we're going to examine the recent info about Impax Laboratories Inc (NASDAQ:IPXL).
In preparation for the third quarter, a total of 22 of the hedge funds we track were bullish in this stock, a change of 5% from one quarter earlier. With hedgies' capital changing hands, there exists a few notable hedge fund managers who were upping their holdings significantly.
According to our 13F database, Samuel Isaly's OrbiMed Advisors had the most valuable position in Impax Laboratories Inc (NASDAQ:IPXL), worth close to $65 million, accounting for 1.4% of its total 13F portfolio. Sitting at the No. 2 spot is Citadel Investment Group, managed by Ken Griffin, which held a $30.4 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include Sanford J. Colen's Apex Capital, Kevin Kotler's Broadfin Capital and Malcolm Fairbairn's Ascend Capital.
As industrywide interest increased, particular hedge funds have jumped into Impax Laboratories Inc (NASDAQ:IPXL) headfirst. OrbiMed Advisors, managed by Samuel Isaly, assembled the biggest position in Impax Laboratories Inc (NASDAQ:IPXL). OrbiMed Advisors had 65 million invested in the company at the end of the quarter. Ken Griffin's Citadel Investment Group also initiated a $30.4 million position during the quarter. The other funds with brand new IPXL positions are Sanford J. Colen's Apex Capital, Kevin Kotler's Broadfin Capital, and Malcolm Fairbairn's Ascend Capital.
Insider buying is best served when the company in focus has seen transactions within the past 180 days. Over the last six-month time frame, Impax Laboratories Inc (NASDAQ:IPXL) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We'll also examine the relationship between both of these indicators in other stocks similar to Impax Laboratories Inc (NASDAQ:IPXL). These stocks are Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL), Intercept Pharmaceuticals Inc (NASDAQ:ICPT), Neurocrine Biosciences, Inc. (NASDAQ:NBIX), Pacira Pharmaceuticals Inc (NASDAQ:PCRX), and Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR). This group of stocks belong to the drug manufacturers - major industry and their market caps resemble IPXL's market cap.