Does Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP) represent a good buying opportunity at the moment? Let’s briefly check the hedge fund sentiment towards the company. Hedge fund firms constantly search out bright intellectuals and highly-experienced employees and throw away millions of dollars on research activities, so it is no wonder why they tend to generate millions in profits each year. It is also true that some hedge fund players fail unconceivably on some occasions, but their stock picks have been generating superior risk-adjusted returns on average over the years.
Is Corbus Pharmaceuticals Holdings Inc a buy here? Investors who are in the know are becoming more confident. The number of bullish hedge fund bets improved by 1 in recent months. At the end of this article we will also compare CRBP to other stocks, including SFX Entertainment Inc (NASDAQ:SFXE), Orion Energy Systems, Inc. (NASDAQ:OESX), and Aeropostale, Inc. (NYSE:ARO) to get a better sense of its popularity.
Follow Corbus Pharmaceuticals Holdings Inc. (NASDAQ:CRBP)
Follow Corbus Pharmaceuticals Holdings Inc. (NASDAQ:CRBP)
Today there are numerous tools stock traders put to use to appraise stocks. A duo of the less utilized tools are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the best picks of the best fund managers can outpace the broader indices by a superb amount (see the details here).
Now, we’re going to take a look at the fresh action surrounding Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP).
How are hedge funds trading Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP)?
At the end of the third quarter, a total of 4 of the hedge funds tracked by Insider Monkey held long positions in this stock, a surge of 33% from the second quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Fred Knoll’s Knoll Capital Management has the most valuable position in Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP), worth close to $4.3 million and corresponding to 1.8% of its total 13F portfolio. On Knoll Capital Management’s heels is Perceptive Advisors, led by Joseph Edelman, holding a $2 million position; 0.2% of its 13F portfolio is allocated to the company. Remaining professional money managers with similar optimism consist of Nathan Fischel’s DAFNA Capital Management and Israel Englander’s Millennium Management.
Consequently, key hedge funds have been driving this bullishness. Millennium Management, managed by Israel Englander, initiated the biggest position in Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP), worth $38,000 at the end of the quarter.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP) but similarly valued. We will take a look at SFX Entertainment Inc (NASDAQ:SFXE), Orion Energy Systems, Inc. (NASDAQ:OESX), Aeropostale, Inc. (NYSE:ARO), and Cosi Inc (NASDAQ:COSI). This group of stocks’ market values resemble CRBP’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SFXE | 12 | 4490 | -4 |
| OESX | 6 | 8972 | 0 |
| ARO | 9 | 12077 | -6 |
| COSI | 4 | 5590 | 0 |
As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $8 million. That figure was $6 million in CRBP’s case. SFX Entertainment Inc (NASDAQ:SFXE) is the most popular stock in this table. Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP) joins Cosi Inc (NASDAQ:COSI) as the least popular stocks with only 4 bullish hedge fund positions. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.
