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.
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.
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