Intercept Pharmaceuticals Inc (ICPT): Are Hedge Funds Right About This Stock?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that cut their entire stakes in the stock during the third quarter. It’s worth mentioning that Ken Griffin’s Citadel Investment Group cut the largest stake of all the hedgies followed by Insider Monkey, comprising an estimated $8.6 million in call options. Ken Greenberg and David Kim’s fund, Ghost Tree Capital, also dropped its call options, about $5 million worth.

Let’s now take a look at hedge fund activity in other stocks similar to Intercept Pharmaceuticals Inc (NASDAQ:ICPT). We will take a look at Morningstar, Inc. (NASDAQ:MORN), Oshkosh Corporation (NYSE:OSK), Lancaster Colony Corp. (NASDAQ:LANC), and National Instruments Corp (NASDAQ:NATI). This group of stocks’ market caps are similar to ICPT’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MORN 15 187579 3
OSK 27 262260 11
LANC 14 253505 0
NATI 24 372551 2

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $269 million. That figure was $392 million in ICPT’s case. Oshkosh Corporation (NYSE:OSK) is the most popular stock in this table. On the other hand Lancaster Colony Corp. (NASDAQ:LANC) is the least popular one with only 14 bullish hedge fund positions. Intercept Pharmaceuticals Inc (NASDAQ:ICPT) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard OSK might be a better candidate to consider taking a long position in.

Disclosure: None