Is Amarin Corporation plc (ADR) (NASDAQ:AMRN) a buy?
In the financial world, there are many metrics shareholders can use to track their holdings. A duo of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top hedge fund managers can beat the S&P 500 by a significant amount (see just how much).
Just as crucial, bullish insider trading sentiment is another way to analyze the financial markets. There are a number of incentives for an upper level exec to cut shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the useful potential of this strategy if you understand where to look (learn more here).
What’s more, let’s analyze the latest info surrounding Amarin Corporation plc (ADR) (NASDAQ:AMRN).
Hedge fund activity in Amarin Corporation plc (ADR) (NASDAQ:AMRN)
In preparation for the third quarter, a total of 15 of the hedge funds we track were long in this stock, a change of -21% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their holdings considerably.
When using filings from the hedgies we track, Wojciech Uzdelewicz’s Espalier Global Management had the largest call position in Amarin Corporation plc (ADR) (NASDAQ:AMRN), worth close to $12.5 million, comprising 0.9% of its total 13F portfolio. Coming in second is Jerome Pfund and Michael Sjostrom of Sectoral Asset Management, with a $10.5 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Other peers that are bullish include Charles Clough’s Clough Capital Partners, and Steven Cohen’s SAC Capital Advisors.
As Amarin Corporation plc (ADR) (NASDAQ:AMRN) has faced bearish sentiment from the top-tier hedge fund industry, it’s safe to say that there exists a select few fund managers that slashed their entire stakes heading into Q2. At the top of the heap, JΘr⌠me Pfund and Michael Sj÷str÷m’s Sectoral Asset Management dumped the largest investment of all the hedgies we key on, comprising about $13.4 million in stock. James E. Flynn’s fund, Deerfield Management, also cut its stock, about $11.6 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 4 funds heading into Q2.
How have insiders been trading Amarin Corporation plc (ADR) (NASDAQ:AMRN)?
Insider buying is best served when the company in question has experienced transactions within the past half-year. Over the last six-month time frame, Amarin Corporation plc (ADR) (NASDAQ:AMRN) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Amarin Corporation plc (ADR) (NASDAQ:AMRN). These stocks are Taro Pharmaceutical Industries Ltd. (NYSE:TARO), Simcere Pharmaceutical Group (ADR) (NYSE:SCR), Orexigen Therapeutics, Inc. (NASDAQ:OREX), The Medicines Company (NASDAQ:MDCO), and ISIS Pharmaceuticals, Inc. (NASDAQ:ISIS). This group of stocks belong to the drug manufacturers – other industry and their market caps are similar to AMRN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Taro Pharmaceutical Industries Ltd. (NYSE:TARO) | 9 | 0 | 0 |
| Simcere Pharmaceutical Group (ADR) (NYSE:SCR) | 3 | 0 | 0 |
| Orexigen Therapeutics, Inc. (NASDAQ:OREX) | 22 | 0 | 3 |
| The Medicines Company (NASDAQ:MDCO) | 20 | 0 | 8 |
| ISIS Pharmaceuticals, Inc. (NASDAQ:ISIS) | 13 | 0 | 10 |
Using the returns shown by the previously mentioned strategies, regular investors must always watch hedge fund and insider trading activity, and Amarin Corporation plc (ADR) (NASDAQ:AMRN) is no exception.
