Is Impax Laboratories Inc (NASDAQ:IPXL) a buy right now? Prominent investors are taking a bullish view. The number of bullish hedge fund positions advanced by 3 recently.
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Just as key, bullish insider trading activity is a second way to break down the world of equities. Just as you’d expect, there are a number of stimuli for an upper level exec to get rid of shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the useful potential of this method if investors know where to look (learn more here).
Consequently, it’s important to take a peek at the latest action encompassing Impax Laboratories Inc (NASDAQ:IPXL).
What have hedge funds been doing with Impax Laboratories Inc (NASDAQ:IPXL)?
Heading into 2013, a total of 14 of the hedge funds we track were long in this stock, a change of 27% from the third quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes considerably.
According to our comprehensive database, Samuel Isaly’s OrbiMed Advisors had the largest position in Impax Laboratories Inc (NASDAQ:IPXL), worth close to $44 million, comprising 1.4% of its total 13F portfolio. Coming in second is Citadel Investment Group, managed by Ken Griffin, which held a $12 million position; 2% of its 13F portfolio is allocated to the company. Other peers that hold long positions include Kevin Kotler’s Broadfin Capital, Steven Cohen’s SAC Capital Advisors and Israel Englander’s Millennium Management.
Now, some big names have been driving this bullishness. Bluefin Investment Management, managed by Scott Burney, created the largest position in Impax Laboratories Inc (NASDAQ:IPXL). Bluefin Investment Management had 5 million invested in the company at the end of the quarter. Mark Kingdon’s Kingdon Capital also initiated a $2 million position during the quarter. The other funds with new positions in the stock are Mark Kingdon’s Kingdon Capital, D. E. Shaw’s D E Shaw, and Cliff Asness’s AQR Capital Management.
Insider trading activity in Impax Laboratories Inc (NASDAQ:IPXL)
Insider buying is particularly usable when the company we’re looking at has experienced transactions within the past half-year. Over the last six-month time period, Impax Laboratories Inc (NASDAQ:IPXL) has experienced 3 unique insiders purchasing, and 5 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 Impax Laboratories Inc (NASDAQ:IPXL). These stocks are Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR), Pacira Pharmaceuticals Inc (NASDAQ:PCRX), Neurocrine Biosciences, Inc. (NASDAQ:NBIX), Intercept Pharmaceuticals Inc (NASDAQ:ICPT), and Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL). This group of stocks are in the drug manufacturers – major industry and their market caps are similar to IPXL’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR)||14||3||1|
|Pacira Pharmaceuticals Inc (NASDAQ:PCRX)||9||0||9|
|Neurocrine Biosciences, Inc. (NASDAQ:NBIX)||12||0||1|
|Intercept Pharmaceuticals Inc (NASDAQ:ICPT)||6||3||0|
|Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL)||15||0||0|
With the returns exhibited by the aforementioned studies, everyday investors should always keep an eye on hedge fund and insider trading activity, and Impax Laboratories Inc (NASDAQ:IPXL) is an important part of this process.
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