Two Healthcare Stocks That Insiders Are Buying

Over the past couple of days, the healthcare sector has witnessed plenty of insider activity, which should not be overlooked. In this article, I will examine two companies in this segment..

First off is Owens & Minor, Inc. (NYSE:OMI), a $2.1 billion market cap Fortune 500 company that provides third-party logistics (3PL) services to manufacturers and suppliers of healthcare and life-science products. On May 7th, Richard Meier, Executive Vice President and Chief Financial Officer, acquired 2,500 shares of Common Stock for $32.50 per share. Following this transaction, Mr. Meier holds 40,566 shares of the company, worth more than $1.3 million.

On top of Mr. Meier’s bullishness, more than a dozen major hedge funds hold long positions in the stock. The largest hedge fund shareholder, Chuck Royce’s Royce & Associates, holds 1.83 million shares of the company. Joel Greenblatt (Gotham Asset Management) also seems to feel confident about the company’s future, as he last increased his stakes by 69% to 373,228 shares (in Q4 2013). Similar is Ken Griffin, David Dreman and Mario Gabelli´s case: they all declared having added shares of the company to their portfolios over the last quarter that they reported.

Despite the positive sentiment amongst insiders and funds, analysts do not seem to like this company. In spite of Owens & Minor’s above average margins and return on assets, coupled with a cheap valuation, most analysts rate the stock as a “hold” or “underperform” case, and expect it to deliver average annual EPS growth rates around 9% over the next five years –compared to an industry mean of 14%-15%.

Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR)

The second healthcare company I would like to refer to is Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR), a $976 million market cap biopharmaceutical company focused on the development and commercialization of its product, lomitapide. Opposite to Owens & Minor, Aegerion does not look good on paper. While it boasts negative margins and returns, it still trades above the biotech industry average valuations. However, analysts seem to love the stock, and recommend buying it. Consensus estimates point towards average annual EPS growth rates around 1,253% over the next five years.

In addition to analysts, both hedge funds and insiders seem to feel bullish about this stock. On Thursday May 8th, Marc D. Beer, Chief Executive Officer, acquired 30,000 shares of Common Stock for prices ranging from $34.64 to $35.35 per share, inclusive. He now holds 33,000 shares directly, and another 246,462 shares, indirectly. Moreover, the two largest hedge fund shareholders, Andreas Halvorsen´s Viking Global, and Arthur B Cohen and Joseph Healey Healthcor Management Lp, have been increasing their stakes at the company. The latter doubled its bets over the last reported quarter, to 850,000 shares; Viking Global increased its holdings by 18%, to 881,333 shares.

 

Disclosure: Javier Hasse holds no position in any stocks mentioned

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

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!