Is MedAssets, Inc. (NASDAQ:MDAS) a good investment?
In the 21st century investor’s toolkit, there are plenty of indicators market participants can use to watch stocks. A duo of the best are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top money managers can trounce the market by a significant amount (see just how much).
Just as key, optimistic insider trading sentiment is a second way to analyze the financial markets. As the old adage goes: there are a number of incentives for an executive to sell shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the valuable potential of this strategy if you know what to do (learn more here).
Thus, we're going to analyze the newest info about MedAssets, Inc. (NASDAQ:MDAS).
At the end of the second quarter, a total of 22 of the hedge funds we track were long in this stock, a change of 22% from the previous quarter. With hedgies' positions undergoing their usual ebb and flow, there exists an "upper tier" of key hedge fund managers who were boosting their stakes significantly.
According to our 13F database, P2 Capital Partners, managed by Claus Moller, holds the biggest position in MedAssets, Inc. (NASDAQ:MDAS). P2 Capital Partners has a $50.9 million position in the stock, comprising 8.2% of its 13F portfolio. Sitting at the No. 2 spot is SAC Capital Advisors, managed by Steven Cohen, which held a $24.2 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include D. E. Shaw's D E Shaw, Israel Englander's Millennium Management and Jim Simons's Renaissance Technologies.
Consequently, certain bigger names have jumped into MedAssets, Inc. (NASDAQ:MDAS) headfirst. P2 Capital Partners, managed by Claus Moller, established the largest position in MedAssets, Inc. (NASDAQ:MDAS). P2 Capital Partners had 50.9 million invested in the company at the end of the quarter. Steven Cohen's SAC Capital Advisors also made a $24.2 million investment in the stock during the quarter. The other funds with new positions in the stock are D. E. Shaw's D E Shaw, Israel Englander's Millennium Management, and Jim Simons's Renaissance Technologies.
Legal insider trading, particularly when it's bullish, is particularly usable when the company in question has seen transactions within the past half-year. Over the latest six-month time period, MedAssets, Inc. (NASDAQ:MDAS) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We'll also take a look at the relationship between both of these indicators in other stocks similar to MedAssets, Inc. (NASDAQ:MDAS). These stocks are Allscripts Healthcare Solutions Inc (NASDAQ:MDRX), Computer Programs & Systems, Inc. (NASDAQ:CPSI), Medidata Solutions Inc (NASDAQ:MDSO), WebMD Health Corp. (NASDAQ:WBMD), and Quality Systems, Inc. (NASDAQ:QSII). This group of stocks belong to the healthcare information services industry and their market caps are closest to MDAS's market cap.