Should You Buy Protalix BioTherapeutics Inc. (PLX)?

Is Protalix BioTherapeutics Inc. (NYSEAMEX:PLX) undervalued? Prominent investors are betting on the stock. The number of long hedge fund positions improved by 2 recently.

At the moment, there are many indicators shareholders can use to watch the equity markets. Two of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best hedge fund managers can outperform the broader indices by a solid margin (see just how much).

Equally as key, positive insider trading activity is another way to parse down the financial markets. Just as you’d expect, there are a number of reasons for an upper level exec to drop shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the useful potential of this method if “monkeys” understand where to look (learn more here).

With these “truths” under our belt, we’re going to take a look at the recent action regarding Protalix BioTherapeutics Inc. (NYSEAMEX:PLX).

How have hedgies been trading Protalix BioTherapeutics Inc. (NYSEAMEX:PLX)?

At the end of the first quarter, a total of 6 of the hedge funds we track held long positions in this stock, a change of 50% from the first quarter. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their holdings meaningfully.

Protalix BioTherapeutics Inc. (PLX)When looking at the hedgies we track, Camber Capital Management, managed by Stephen DuBois, holds the most valuable position in Protalix BioTherapeutics Inc. (NYSEAMEX:PLX). Camber Capital Management has a $4.4 million position in the stock, comprising 0.4% of its 13F portfolio. On Camber Capital Management’s heels is First Eagle Investment Management, managed by Jean-Marie Eveillard, which held a $2.7 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Nathan Fischel’s DAFNA Capital Management, D. E. Shaw’s D E Shaw and Ken Griffin’s Citadel Investment Group.

As industrywide interest jumped, key money managers have jumped into Protalix BioTherapeutics Inc. (NYSEAMEX:PLX) headfirst. Camber Capital Management, managed by Stephen DuBois, assembled the largest position in Protalix BioTherapeutics Inc. (NYSEAMEX:PLX). Camber Capital Management had 4.4 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also made a $0.5 million investment in the stock during the quarter. The only other fund with a new position in the stock is John Overdeck and David Siegel’s Two Sigma Advisors.

Insider trading activity in Protalix BioTherapeutics Inc. (NYSEAMEX:PLX)

Insider trading activity, especially when it’s bullish, is particularly usable when the company we’re looking at has seen transactions within the past six months. Over the latest half-year time period, Protalix BioTherapeutics Inc. (NYSEAMEX:PLX) has experienced zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Protalix BioTherapeutics Inc. (NYSEAMEX:PLX). These stocks are Sequenom, Inc. (NASDAQ:SQNM), Emergent Biosolutions Inc (NYSE:EBS), Hyperion Therapeutics Inc (NASDAQ:HPTX), ChemoCentryx Inc (NASDAQ:CCXI), and Sangamo Biosciences, Inc. (NASDAQ:SGMO). All of these stocks are in the biotechnology industry and their market caps are similar to PLX’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Sequenom, Inc. (NASDAQ:SQNM) 17 2 0
Emergent Biosolutions Inc (NYSE:EBS) 15 0 1
Hyperion Therapeutics Inc (NASDAQ:HPTX) 11 0 1
ChemoCentryx Inc (NASDAQ:CCXI) 6 0 6
Sangamo Biosciences, Inc. (NASDAQ:SGMO) 9 0 5

With the returns demonstrated by Insider Monkey’s strategies, everyday investors must always monitor hedge fund and insider trading activity, and Protalix BioTherapeutics Inc. (NYSEAMEX:PLX) applies perfectly to this mantra.

Click here to learn why you should track hedge funds

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Subscribe

Enter your email:

Delivered by FeedBurner

X

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!