Solta Medical Inc (NASDAQ:SLTM) shareholders have witnessed a decrease in hedge fund interest lately.
At the moment, there are a multitude of indicators market participants can use to analyze publicly traded companies. A duo 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 top money managers can outperform the market by a solid amount (see just how much).
Equally as key, optimistic insider trading activity is another way to break down the financial markets. Obviously, there are a variety of stimuli for an insider to drop shares of his or her company, but only one, very clear reason why they would buy. Various academic studies have demonstrated the valuable potential of this method if investors know where to look (learn more here).
With these “truths” under our belt, it’s important to take a look at the latest action surrounding Solta Medical Inc (NASDAQ:SLTM).
How are hedge funds trading Solta Medical Inc (NASDAQ:SLTM)?
In preparation for this year, a total of 6 of the hedge funds we track were bullish in this stock, a change of -25% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes considerably.
When looking at the hedgies we track, Kevin Kotler’s Broadfin Capital had the biggest position in Solta Medical Inc (NASDAQ:SLTM), worth close to $9.3 million, comprising 2.3% of its total 13F portfolio. On Broadfin Capital’s heels is Deerfield Management, managed by James E. Flynn, which held a $1.7 million position; 0.1% of its 13F portfolio is allocated to the company. Other hedge funds that hold long positions include Samuel Isaly’s OrbiMed Advisors, Anand Parekh’s Alyeska Investment Group and Israel Englander’s Millennium Management.
Because Solta Medical Inc (NASDAQ:SLTM) has experienced a declination in interest from hedge fund managers, we can see that there exists a select few money managers that slashed their full holdings last quarter. Interestingly, Jim Simons’s Renaissance Technologies dumped the biggest position of all the hedgies we watch, comprising close to $0.2 million in stock., and John Overdeck and David Siegel of Two Sigma Advisors was right behind this move, as the fund cut about $0 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 2 funds last quarter.
How have insiders been trading Solta Medical Inc (NASDAQ:SLTM)?
Insider trading activity, especially when it’s bullish, is most useful when the company we’re looking at has experienced transactions within the past 180 days. Over the last 180-day time frame, Solta Medical Inc (NASDAQ:SLTM) has experienced zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Solta Medical Inc (NASDAQ:SLTM). These stocks are RTI Biologics Inc. (NASDAQ:RTIX), Cutera, Inc. (NASDAQ:CUTR), Zeltiq Aesthetics Inc (NASDAQ:ZLTQ), Cryolife Inc (NYSE:CRY), and Hansen Medical, Inc. (NASDAQ:HNSN). This group of stocks are the members of the medical appliances & equipment industry and their market caps resemble SLTM’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| RTI Biologics Inc. (NASDAQ:RTIX) | 14 | 0 | 1 |
| Cutera, Inc. (NASDAQ:CUTR) | 11 | 0 | 4 |
| Zeltiq Aesthetics Inc (NASDAQ:ZLTQ) | 4 | 0 | 1 |
| Cryolife Inc (NYSE:CRY) | 7 | 0 | 2 |
| Hansen Medical, Inc. (NASDAQ:HNSN) | 4 | 1 | 7 |
With the returns exhibited by our strategies, everyday investors should always monitor hedge fund and insider trading activity, and Solta Medical Inc (NASDAQ:SLTM) is no exception.
