WebMD Health Corp. (NASDAQ:WBMD) has experienced a decrease in hedge fund interest recently.
In the 21st century investor’s toolkit, there are a multitude of metrics investors can use to track publicly traded companies. A duo of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top investment managers can outclass their index-focused peers by a superb amount (see just how much).
Just as beneficial, optimistic insider trading activity is a second way to parse down the world of equities. There are lots of reasons for a bullish insider to cut shares of his or her company, but just one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the impressive potential of this method if investors understand what to do (learn more here).
With all of this in mind, it’s important to take a gander at the key action regarding WebMD Health Corp. (NASDAQ:WBMD).
What does the smart money think about WebMD Health Corp. (NASDAQ:WBMD)?
At the end of the fourth quarter, a total of 13 of the hedge funds we track were long in this stock, a change of -28% from the previous quarter. With hedgies’ sentiment swirling, there exists a few noteworthy hedge fund managers who were increasing their stakes considerably.
When looking at the hedgies we track, Icahn Capital LP, managed by Carl Icahn, holds the largest position in WebMD Health Corp. (NASDAQ:WBMD). Icahn Capital LP has a $96.1 million position in the stock, comprising 0.7% of its 13F portfolio. On Icahn Capital LP’s heels is Michael Lowenstein of Kensico Capital, with a $81.6 million position; 2.5% of its 13F portfolio is allocated to the company. Remaining hedgies with similar optimism include Clifton S. Robbins’s Blue Harbour Group, D. E. Shaw’s D E Shaw and SAC Subsidiary’s CR Intrinsic Investors.
Due to the fact that WebMD Health Corp. (NASDAQ:WBMD) has faced falling interest from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of money managers that slashed their entire stakes last quarter. At the top of the heap, Richard C. Patton’s Courage Capital said goodbye to the biggest stake of the 450+ funds we monitor, valued at an estimated $4.1 million in stock.. Joel Greenblatt’s fund, Gotham Asset Management, also sold off its stock, about $1.3 million worth. These moves are important to note, as total hedge fund interest was cut by 5 funds last quarter.
What have insiders been doing with WebMD Health Corp. (NASDAQ:WBMD)?
Insider purchases made by high-level executives is particularly usable when the company in focus has experienced transactions within the past six months. Over the last half-year time period, WebMD Health Corp. (NASDAQ:WBMD) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to WebMD Health Corp. (NASDAQ:WBMD). These stocks are Computer Programs & Systems, Inc. (NASDAQ:CPSI), Allscripts Healthcare Solutions Inc (NASDAQ:MDRX), Medidata Solutions Inc (NASDAQ:MDSO), Quality Systems, Inc. (NASDAQ:QSII), and MedAssets, Inc. (NASDAQ:MDAS). This group of stocks are the members of the healthcare information services industry and their market caps match WBMD’s market cap.