Luminex Corporation (NASDAQ:LMNX) investors should be aware of a decrease in hedge fund sentiment lately.
In the 21st century investor’s toolkit, there are many methods shareholders can use to watch Mr. Market. 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 best money managers can outperform their index-focused peers by a healthy amount (see just how much).
Equally as integral, positive insider trading activity is another way to break down the investments you’re interested in. Just as you’d expect, there are a number of stimuli for an executive to sell shares of his or her company, but just one, very clear reason why they would behave bullishly. Plenty of academic studies have demonstrated the impressive potential of this method if you know what to do (learn more here).
With all of this in mind, we’re going to take a peek at the recent action encompassing Luminex Corporation (NASDAQ:LMNX).
How are hedge funds trading Luminex Corporation (NASDAQ:LMNX)?
At Q1’s end, a total of 8 of the hedge funds we track held long positions in this stock, a change of 0% from one quarter earlier. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their stakes significantly.
When looking at the hedgies we track, Ken Griffin’s Citadel Investment Group had the biggest position in Luminex Corporation (NASDAQ:LMNX), worth close to $7.1 million, accounting for less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is Israel Englander of Millennium Management, with a $4.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other peers that are bullish include D. E. Shaw’s D E Shaw, Jim Simons’s Renaissance Technologies and Matthew Tewksbury’s Stevens Capital Management.
Due to the fact that Luminex Corporation (NASDAQ:LMNX) has witnessed a declination in interest from the aggregate hedge fund industry, logic holds that there exists a select few funds that decided to sell off their full holdings heading into Q2. Intriguingly, Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management cut the largest stake of the “upper crust” of funds we watch, comprising an estimated $10 million in stock., and Mike Vranos of Ellington was right behind this move, as the fund cut about $0.4 million worth. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Insider trading activity in Luminex Corporation (NASDAQ:LMNX)
Insider buying is best served when the primary stock in question has experienced transactions within the past 180 days. Over the last 180-day time period, Luminex Corporation (NASDAQ:LMNX) has seen 2 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Luminex Corporation (NASDAQ:LMNX). These stocks are Merit Medical Systems, Inc. (NASDAQ:MMSI), ICU Medical, Incorporated (NASDAQ:ICUI), Cantel Medical Corp. (NYSE:CMN), Tornier N.V. (NASDAQ:TRNX), and Conceptus, Inc. (NASDAQ:CPTS). This group of stocks are the members of the medical instruments & supplies industry and their market caps are closest to LMNX’s market cap.