Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Hedge Funds Aren’t Crazy About Neurocrine Biosciences, Inc. (NBIX) Anymore: Keryx Biopharmaceuticals (KERX), Rigel Pharmaceuticals, Inc. (RIGL)

Neurocrine Biosciences, Inc. (NASDAQ:NBIX) was in 12 hedge funds’ portfolio at the end of December. NBIX shareholders have witnessed a decrease in enthusiasm from smart money of late. There were 16 hedge funds in our database with NBIX positions at the end of the previous quarter.

Neurocrine Biosciences, Inc. (NASDAQ:NBIX)To the average investor, there are a multitude of indicators investors can use to monitor publicly traded companies. A pair 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 top picks of the top hedge fund managers can outclass their index-focused peers by a healthy amount (see just how much).

Just as beneficial, bullish insider trading sentiment is a second way to parse down the stock market universe. Obviously, there are lots of reasons for a bullish insider to get rid of shares of his or her company, but only one, very clear reason why they would buy. Various academic studies have demonstrated the useful potential of this tactic if “monkeys” understand where to look (learn more here).

Consequently, we’re going to take a peek at the latest action regarding Neurocrine Biosciences, Inc. (NASDAQ:NBIX).

How are hedge funds trading Neurocrine Biosciences, Inc. (NASDAQ:NBIX)?

At the end of the fourth quarter, a total of 12 of the hedge funds we track were bullish in this stock, a change of -25% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their holdings meaningfully.

According to our comprehensive database, OrbiMed Advisors, managed by Samuel Isaly, holds the most valuable position in Neurocrine Biosciences, Inc. (NASDAQ:NBIX). OrbiMed Advisors has a $33 million position in the stock, comprising 1% of its 13F portfolio. The second largest stake is held by Joseph Edelman of Perceptive Advisors, with a $31 million position; the fund has 5.4% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Jacob Gottlieb’s Visium Asset Management, Steven Cohen’s SAC Capital Advisors and SAC Subsidiary’s CR Intrinsic Investors.

Because Neurocrine Biosciences, Inc. (NASDAQ:NBIX) has witnessed a declination in interest from hedge fund managers, it’s easy to see that there lies a certain “tier” of hedge funds that elected to cut their positions entirely in Q4. Interestingly, Joel Greenblatt’s Gotham Asset Management dumped the biggest position of the “upper crust” of funds we key on, worth an estimated $2 million in stock., and J. Alan Reid, Jr. of Forward Management was right behind this move, as the fund sold off about $0 million worth. These transactions are interesting, as total hedge fund interest was cut by 4 funds in Q4.

How have insiders been trading Neurocrine Biosciences, Inc. (NASDAQ:NBIX)?

Insider purchases made by high-level executives is best served when the primary stock in question has experienced transactions within the past 180 days. Over the latest 180-day time frame, Neurocrine Biosciences, Inc. (NASDAQ:NBIX) has experienced zero unique insiders buying, and 1 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Neurocrine Biosciences, Inc. (NASDAQ:NBIX). These stocks are Keryx Biopharmaceuticals (NASDAQ:KERX), Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL), Intercept Pharmaceuticals Inc (NASDAQ:ICPT), Impax Laboratories Inc (NASDAQ:IPXL), and Pacira Pharmaceuticals Inc (NASDAQ:PCRX). All of these stocks are in the drug manufacturers – major industry and their market caps match NBIX’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Keryx Biopharmaceuticals (NASDAQ:KERX) 6 0 2
Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) 15 0 0
Intercept Pharmaceuticals Inc (NASDAQ:ICPT) 6 3 0
Impax Laboratories Inc (NASDAQ:IPXL) 14 3 5
Pacira Pharmaceuticals Inc (NASDAQ:PCRX) 9 0 9

With the results exhibited by the aforementioned research, retail investors should always monitor hedge fund and insider trading activity, and Neurocrine Biosciences, Inc. (NASDAQ:NBIX) is an important part of this process.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% for the S&P 500 index. Try it now by clicking the link above.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.