Alkermes Plc (ALKS): Are Hedge Funds Right About This Stock?

Because Alkermes Plc (NASDAQ:ALKS) has faced declining sentiment from hedge fund managers, logic holds that there were a few money managers that decided to sell off their entire stakes by the end of the third quarter. At the top of the heap, Ken Griffin’s Citadel Investment Group got rid of the biggest stake of the 700 funds tracked by Insider Monkey, comprising an estimated $37.9 million in stock. Samuel Isaly’s fund, OrbiMed Advisors, also cut its stock, about $7.4 million worth.

Let’s check out hedge fund activity in other stocks similar to Alkermes Plc (NASDAQ:ALKS). We will take a look at IDEX Corporation (NYSE:IEX), Trimble Navigation Limited (NASDAQ:TRMB), The Middleby Corporation (NASDAQ:MIDD), and Mid America Apartment Communities Inc (NYSE:MAA). All of these stocks’ market caps resemble ALKS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
IEX 16 184770 2
TRMB 19 531380 1
MIDD 26 345362 7
MAA 15 206005 -2

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $317 million. That figure was $606 million in ALKS’s case. The Middleby Corporation (NASDAQ:MIDD) is the most popular stock in this table. On the other hand Mid America Apartment Communities Inc (NYSE:MAA) is the least popular one with only 15 bullish hedge fund positions. Alkermes Plc (NASDAQ:ALKS) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard MIDD might be a better candidate to consider taking a long position in.

Disclosure: None