WebMD Health Corp. (NASDAQ:WBMD) was in 15 hedge funds’ portfolio at the end of March. WBMD investors should pay attention to an increase in hedge fund interest lately. There were 14 hedge funds in our database with WBMD holdings at the end of the previous quarter.
To the average investor, there are plenty of metrics investors can use to monitor stocks. Some of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite money managers can beat the broader indices by a very impressive margin (see just how much).
Equally as integral, bullish insider trading activity is another way to break down the financial markets. There are plenty of reasons for a bullish insider to cut shares of his or her company, but only one, very simple reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this tactic if “monkeys” know where to look (learn more here).
Now, we’re going to take a look at the recent action encompassing WebMD Health Corp. (NASDAQ:WBMD).
What have hedge funds been doing with WebMD Health Corp. (NASDAQ:WBMD)?
In preparation for this quarter, a total of 15 of the hedge funds we track held long positions in this stock, a change of 7% from one quarter earlier.
As aggregate interest increased, specific money managers were breaking ground themselves. Point State Capital, managed by Sean Cullinan, created the most valuable position in WebMD Health Corp. (NASDAQ:WBMD). Point State Capital had 25.3 million invested in the company at the end of the quarter. Donald Chiboucis’s Columbus Circle Investors also initiated a $22.2 million position during the quarter. The other funds with new positions in the stock are Jeffrey Vinik’s Vinik Asset Management, John Overdeck and David Siegel’s Two Sigma Advisors, and Josh Resnick’s Jericho Capital Asset Management.
How have insiders been trading WebMD Health Corp. (NASDAQ:WBMD)?
Insider buying is at its handiest when the primary stock in question has seen transactions within the past half-year. Over the last 180-day time period, WebMD Health Corp. (NASDAQ:WBMD) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to WebMD Health Corp. (NASDAQ:WBMD). These stocks are Computer Programs & Systems, Inc. (NASDAQ:CPSI), Allscripts Healthcare Solutions Inc (NASDAQ:MDRX), Medidata Solutions Inc (NASDAQ:MDSO), Quality Systems, Inc. (NASDAQ:QSII), and MedAssets, Inc. (NASDAQ:MDAS). This group of stocks belong to the healthcare information services industry and their market caps match WBMD’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Computer Programs & Systems, Inc. (NASDAQ:CPSI) | 9 | 3 | 2 |
| Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) | 27 | 5 | 3 |
| Medidata Solutions Inc (NASDAQ:MDSO) | 11 | 0 | 9 |
| Quality Systems, Inc. (NASDAQ:QSII) | 10 | 1 | 0 |
| MedAssets, Inc. (NASDAQ:MDAS) | 18 | 0 | 8 |
With the results demonstrated by the aforementioned tactics, everyday investors must always monitor hedge fund and insider trading activity, and WebMD Health Corp. (NASDAQ:WBMD) is no exception.
