Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) investors: listen up.
In the 21st century investor’s toolkit, there are tons of metrics shareholders can use to track publicly traded companies. A couple of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can outclass their index-focused peers by a solid margin (see just how much).
Just as necessary, bullish insider trading sentiment is another way to analyze the investments you're interested in. As the old adage goes: there are a variety of stimuli for an executive to cut shares of his or her company, but just one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the market-beating potential of this method if you understand where to look (learn more here).
Keeping this in mind, we're going to analyze the newest info for Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX).
Hedge fund activity in Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX)
Heading into Q3, a total of 24 of the hedge funds we track held long positions in this stock, a change of -17% from one quarter earlier. With hedgies' positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes significantly.
When using filings from the hedgies we track, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the most valuable position in Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX). Adage Capital Management has a $126.7 million position in the stock, comprising 0.4% of its 13F portfolio. The second largest stake is held by Sectoral Asset Management, managed by Jerome Pfund and Michael Sjostrom, which held a $117.7 million position; 3.5% of its 13F portfolio is allocated to the stock. Other peers with similar optimism include William Leland Edwards's Palo Alto Investors, Samuel Isaly's OrbiMed Advisors and Ken Griffin's Citadel Investment Group.
As Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) has faced dropping sentiment from the smart money's best and brightest, it's easy to see that there is a sect of money managers that decided to sell off their full holdings heading into Q2. It's worth mentioning that Sean Cullinan's Point State Capital cut the largest stake of the 450+ funds we track, comprising an estimated $31.5 million in stock. Julian Baker and Felix Baker's fund, Baker Bros. Advisors, also sold off its stock, about $14.2 million worth. These moves are interesting, as total hedge fund interest dropped by 5 funds heading into Q2.
Insider buying made by high-level executives is most useful when the company in focus has experienced transactions within the past half-year. Over the last six-month time period, Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) has experienced zero unique insiders purchasing, and 12 insider sales (see the details of insider trades here).
We'll go over the relationship between both of these indicators in other stocks similar to Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX). These stocks are Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), Medivation Inc (NASDAQ:MDVN), Seattle Genetics, Inc. (NASDAQ:SGEN), BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), and Illumina, Inc. (NASDAQ:ILMN). All of these stocks are in the biotechnology industry and their market caps match ONXX's market cap.