Omnicell, Inc. (NASDAQ:OMCL) investors should pay attention to a decrease in activity from the world's largest hedge funds in recent months.
In the financial world, there are plenty of metrics market participants can use to track Mr. Market. A pair of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best fund managers can outclass their index-focused peers by a solid margin (see just how much).
Just as integral, optimistic insider trading activity is another way to parse down the world of equities. There are many incentives for an executive to cut shares of his or her company, but just one, very obvious reason why they would buy. Several academic studies have demonstrated the impressive potential of this tactic if piggybackers understand what to do (learn more here).
With all of this in mind, we're going to take a gander at the key action regarding Omnicell, Inc. (NASDAQ:OMCL).
At Q1's end, a total of 8 of the hedge funds we track were long in this stock, a change of 0% from the first quarter. With the smart money's positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes meaningfully.
Of the funds we track, John Overdeck and David Siegel's Two Sigma Advisors had the largest position in Omnicell, Inc. (NASDAQ:OMCL), worth close to $1.2 million, comprising less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is Renaissance Technologies, managed by Jim Simons, which held a $0.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Israel Englander's Millennium Management, James Dondero's Highland Capital Management and Cliff Asness's AQR Capital Management.
Judging by the fact that Omnicell, Inc. (NASDAQ:OMCL) has witnessed declining sentiment from the entirety of the hedge funds we track, it's safe to say that there is a sect of money managers that decided to sell off their positions entirely in Q1. At the top of the heap, Paul Tudor Jones's Tudor Investment Corp said goodbye to the largest investment of all the hedgies we key on, valued at close to $0.3 million in stock.. Matthew Tewksbury's fund, Stevens Capital Management, also said goodbye to its stock, about $0.2 million worth. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Insider buying is particularly usable when the company in focus has seen transactions within the past six months. Over the last half-year time frame, Omnicell, Inc. (NASDAQ:OMCL) has experienced zero unique insiders purchasing, and 11 insider sales (see the details of insider trades here).
With the results shown by Insider Monkey's time-tested strategies, everyday investors should always pay attention to hedge fund and insider trading sentiment, and Omnicell, Inc. (NASDAQ:OMCL) shareholders fit into this picture quite nicely.