In the 21st century investor’s toolkit, there are plenty of indicators investors can use to monitor stocks. Some of the best are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best fund managers can beat the broader indices by a very impressive amount (see just how much).
Just as crucial, optimistic insider trading sentiment is a second way to analyze the world of equities. There are lots of stimuli for an insider to cut shares of his or her company, but just one, very simple reason why they would buy. Several academic studies have demonstrated the market-beating potential of this strategy if “monkeys” understand where to look (learn more here).
Now that that’s out of the way, let’s discuss the newest info surrounding Genomic Health, Inc. (NASDAQ:GHDX).
How have hedgies been trading Genomic Health, Inc. (NASDAQ:GHDX)?
Heading into Q3, a total of 7 of the hedge funds we track were long in this stock, a change of -42% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were boosting their holdings significantly.
Out of the hedge funds we follow, Baker Bros. Advisors, managed by Julian Baker and Felix Baker, holds the biggest position in Genomic Health, Inc. (NASDAQ:GHDX). Baker Bros. Advisors has a $432.9 million position in the stock, comprising 8.6% of its 13F portfolio. The second largest stake is held by Renaissance Technologies, managed by Jim Simons, which held a $5.3 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining hedge funds that hold long positions include Israel Englander’s Millennium Management, Ken Griffin’s Citadel Investment Group and Chuck Royce’s Royce & Associates.
Due to the fact Genomic Health, Inc. (NASDAQ:GHDX) has witnessed dropping sentiment from the entirety of the hedge funds we track, we can see that there lies a certain “tier” of hedgies that elected to cut their positions entirely heading into Q2. At the top of the heap, Donald Chiboucis’s Columbus Circle Investors dropped the biggest stake of the “upper crust” of funds we monitor, totaling an estimated $6.9 million in stock. SAC Subsidiary’s fund, CR Intrinsic Investors, also dropped its stock, about $2.5 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 5 funds heading into Q2.
Insider trading activity in Genomic Health, Inc. (NASDAQ:GHDX)
Insider buying made by high-level executives is most useful when the company in focus has seen transactions within the past half-year. Over the last six-month time frame, Genomic Health, Inc. (NASDAQ:GHDX) has seen zero unique insiders buying, and zero 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 Genomic Health, Inc. (NASDAQ:GHDX). These stocks are ICON plc – Ordinary Shares (NASDAQ:ICLR), Novadaq Technologies Inc. (NASDAQ:NVDQ), Nordion Inc (USA) (NYSE:NDZ), WuXi PharmaTech (Cayman) Inc. (ADR) (NYSE:WX), and Bio-Reference Laboratories Inc (NASDAQ:BRLI). All of these stocks are in the medical laboratories & research industry and their market caps resemble GHDX’s market cap.