In the 21st century investor’s toolkit, there are a multitude of methods shareholders can use to track Mr. Market. Some of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite fund managers can outclass the market by a healthy amount (see just how much).
Equally as useful, positive insider trading activity is another way to analyze the stock market universe. There are many reasons for a bullish insider to downsize shares of his or her company, but only one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the impressive potential of this method if piggybackers understand where to look (learn more here).
What’s more, it’s important to examine the newest info surrounding Merit Medical Systems, Inc. (NASDAQ:MMSI).
Hedge fund activity in Merit Medical Systems, Inc. (NASDAQ:MMSI)
Heading into Q3, a total of 10 of the hedge funds we track were long in this stock, a change of -9% from the previous quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings significantly.
Out of the hedge funds we follow, Chuck Royce’s Royce & Associates had the largest position in Merit Medical Systems, Inc. (NASDAQ:MMSI), worth close to $20.5 million, comprising 0.1% of its total 13F portfolio. On Royce & Associates’s heels is Kevin Kotler of Broadfin Capital, with a $3.7 million position; 0.7% of its 13F portfolio is allocated to the stock. Remaining hedgies that are bullish include Israel Englander’s Millennium Management, Mark Broach’s Manatuck Hill Partners and Phill Gross and Robert Atchinson’s Adage Capital Management.
Due to the fact Merit Medical Systems, Inc. (NASDAQ:MMSI) has faced a fall in interest from the smart money’s best and brightest, we can see that there were a few funds that slashed their full holdings at the end of the second quarter. At the top of the heap, Gregory Fraser, Rudolph Kluiber, and Timothy Kroch’s GRT Capital Partners cut the largest position of the 450+ funds we monitor, worth about $0.5 million in stock, and David Cohen and Harold Levy of Iridian Asset Management was right behind this move, as the fund said goodbye to about $0.4 million worth. These moves are important to note, as aggregate hedge fund interest fell by 1 funds at the end of the second quarter.
What do corporate executives and insiders think about Merit Medical Systems, Inc. (NASDAQ:MMSI)?
Bullish insider trading is best served when the company in question has seen transactions within the past 180 days. Over the latest half-year time frame, Merit Medical Systems, Inc. (NASDAQ:MMSI) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Merit Medical Systems, Inc. (NASDAQ:MMSI). These stocks are Conceptus, Inc. (NASDAQ:CPTS), Atrion Corporation (NASDAQ:ATRI), Luminex Corporation (NASDAQ:LMNX), AngioDynamics, Inc. (NASDAQ:ANGO), and Antares Pharma Inc (NASDAQ:ATRS). All of these stocks are in the medical instruments & supplies industry and their market caps match MMSI’s market cap.