What’s a smart HeartWare International Inc (NASDAQ:HTWR) investor to do?
In the 21st century investor’s toolkit, there are plenty of metrics investors can use to monitor publicly traded companies. A couple of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best fund managers can beat the S&P 500 by a healthy amount (see just how much).
Just as key, bullish insider trading activity is another way to look at the financial markets. As the old adage goes: there are many stimuli for an upper level exec to get rid of shares of his or her company, but only one, very clear reason why they would buy. Plenty of academic studies have demonstrated the impressive potential of this method if investors know what to do (learn more here).
Furthermore, we’re going to study the newest info surrounding HeartWare International Inc (NASDAQ:HTWR).
What does the smart money think about HeartWare International Inc (NASDAQ:HTWR)?
At the end of the second quarter, a total of 15 of the hedge funds we track were long in this stock, a change of -21% from the previous quarter. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their holdings significantly.
According to our 13F database, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the biggest position in HeartWare International Inc (NASDAQ:HTWR). Adage Capital Management has a $69.1 million position in the stock, comprising 0.2% of its 13F portfolio. The second largest stake is held by Sectoral Asset Management, managed by Jerome Pfund and Michael Sjostrom, which held a $57.6 million position; the fund has 1.7% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions include Jacob Gottlieb’s Visium Asset Management, James E. Flynn’s Deerfield Management and Matthew Halbower’s Pentwater Capital Management.
Since HeartWare International Inc (NASDAQ:HTWR) has witnessed a fall in interest from the top-tier hedge fund industry, it’s safe to say that there was a specific group of funds that slashed their entire stakes last quarter. Intriguingly, Steven Cohen’s SAC Capital Advisors cut the biggest position of the “upper crust” of funds we watch, comprising about $14.5 million in stock. SAC Subsidiary’s fund, CR Intrinsic Investors, also dropped its stock, about $12.4 million worth. These moves are interesting, as aggregate hedge fund interest fell by 4 funds last quarter.
How have insiders been trading HeartWare International Inc (NASDAQ:HTWR)?
Legal insider trading, particularly when it’s bullish, is at its handiest when the company in question has seen transactions within the past 180 days. Over the latest six-month time frame, HeartWare International Inc (NASDAQ:HTWR) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to HeartWare International Inc (NASDAQ:HTWR). These stocks are Hill-Rom Holdings, Inc. (NYSE:HRC), Endologix, Inc. (NASDAQ:ELGX), Integra Lifesciences Holdings Corp (NASDAQ:IART), DexCom, Inc. (NASDAQ:DXCM), and Insulet Corporation (NASDAQ:PODD). This group of stocks are in the medical instruments & supplies industry and their market caps are similar to HTWR’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Hill-Rom Holdings, Inc. (NYSE:HRC)||14||0||0|
|Endologix, Inc. (NASDAQ:ELGX)||10||0||0|
|Integra Lifesciences Holdings Corp (NASDAQ:IART)||7||0||0|
|DexCom, Inc. (NASDAQ:DXCM)||11||0||0|
|Insulet Corporation (NASDAQ:PODD)||13||0||0|
Using the results demonstrated by Insider Monkey’s analyses, regular investors should always track hedge fund and insider trading sentiment, and HeartWare International Inc (NASDAQ:HTWR) shareholders fit into this picture quite nicely.