Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Should You Avoid Accuray Incorporated (ARAY)?: GenMark Diagnostics, Inc (GNMK), Natus Medical Inc (BABY)

Accuray Incorporated (NASDAQ:ARAY) was in 13 hedge funds’ portfolio at the end of the fourth quarter of 2012. ARAY has experienced a decrease in activity from the world’s largest hedge funds in recent months. There were 13 hedge funds in our database with ARAY holdings at the end of the previous quarter.

Accuray Incorporated (NASDAQ:ARAY)

In the 21st century investor’s toolkit, there are plenty of gauges market participants can use to track stocks. Two 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 best picks of the elite hedge fund managers can beat the broader indices by a very impressive margin (see just how much).

Just as key, optimistic insider trading activity is another way to break down the investments you’re interested in. There are a number of reasons for a corporate insider to get rid of shares of his or her company, but only one, very clear reason why they would initiate a purchase. Plenty of academic studies have demonstrated the market-beating potential of this method if “monkeys” understand what to do (learn more here).

Consequently, we’re going to take a peek at the recent action surrounding Accuray Incorporated (NASDAQ:ARAY).

How have hedgies been trading Accuray Incorporated (NASDAQ:ARAY)?

At year’s end, a total of 13 of the hedge funds we track were bullish in this stock, a change of 0% from the previous quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their holdings significantly.

Of the funds we track, John Burbank’s Passport Capital had the largest position in Accuray Incorporated (NASDAQ:ARAY), worth close to $26 million, comprising 1% of its total 13F portfolio. On Passport Capital’s heels is Phill Gross and Robert Atchinson of Adage Capital Management, with a $12 million position; the fund has 0% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management, James E. Flynn’s Deerfield Management and SAC Subsidiary’s CR Intrinsic Investors.

Judging by the fact that Accuray Incorporated (NASDAQ:ARAY) has witnessed a declination in interest from the aggregate hedge fund industry, logic holds that there exists a select few money managers that elected to cut their positions entirely at the end of the year. It’s worth mentioning that Jacob Gottlieb’s Visium Asset Management dropped the largest investment of the 450+ funds we monitor, worth about $4 million in stock., and JΘr⌠me Pfund and Michael Sj÷str÷m of Sectoral Asset Management was right behind this move, as the fund cut about $4 million worth. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

How have insiders been trading Accuray Incorporated (NASDAQ:ARAY)?

Insider buying is particularly usable when the primary stock in question has experienced transactions within the past 180 days. Over the latest half-year time period, Accuray Incorporated (NASDAQ:ARAY) has experienced 2 unique insiders purchasing, and 6 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Accuray Incorporated (NASDAQ:ARAY). These stocks are GenMark Diagnostics, Inc (NASDAQ:GNMK), Natus Medical Inc (NASDAQ:BABY), Navidea Biopharmaceuticals Inc (NYSEAMEX:NAVB), Syneron Medical Ltd. (NASDAQ:ELOS), and PhotoMedex Inc (NASDAQ:PHMD). This group of stocks are the members of the medical appliances & equipment industry and their market caps resemble ARAY’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
GenMark Diagnostics, Inc (NASDAQ:GNMK) 7 0 6
Natus Medical Inc (NASDAQ:BABY) 15 1 5
Navidea Biopharmaceuticals Inc (NYSEAMEX:NAVB) 3 6 1
Syneron Medical Ltd. (NASDAQ:ELOS) 12 0 0
PhotoMedex Inc (NASDAQ:PHMD) 4 0 2

With the returns shown by the aforementioned studies, retail investors should always pay attention to hedge fund and insider trading activity, and Accuray Incorporated (NASDAQ:ARAY) is an important part of this process.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% for the S&P 500 index. Try it now by clicking the link above.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!