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.

Nektar Therapeutics (NKTR): Insiders Aren’t Crazy About It But Hedge Funds Love It

Is Nektar Therapeutics (NASDAQ:NKTR) a good investment?

Now, according to many of your peers, hedge funds are assumed to be useless, outdated investment vehicles of a forgotten age. Although there are more than 8,000 hedge funds trading today, Insider Monkey looks at the aristocrats of this group, close to 525 funds. It is widely held that this group oversees most of the hedge fund industry’s total assets, and by watching their highest performing equity investments, we’ve revealed a few investment strategies that have historically beaten the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).

Equally as crucial, bullish insider trading activity is another way to analyze the investments you’re interested in. There are a variety of stimuli for an upper level exec to sell shares of his or her company, but only one, very simple reason why they would behave bullishly. Plenty of academic studies have demonstrated the valuable potential of this method if piggybackers know where to look (learn more here).

Furthermore, let’s study the latest info for Nektar Therapeutics (NASDAQ:NKTR).

How have hedgies been trading Nektar Therapeutics (NASDAQ:NKTR)?

Heading into Q3, a total of 10 of the hedge funds we track were long in this stock, a change of 25% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their holdings considerably.

Nektar Therapeutics (NASDAQ:NKTR)Out of the hedge funds we follow, Healthcor Management LP, managed by Arthur B Cohen and Joseph Healey, holds the most valuable position in Nektar Therapeutics (NASDAQ:NKTR). Healthcor Management LP has a $46.2 million position in the stock, comprising 2.8% of its 13F portfolio. Coming in second is Deerfield Management, managed by James E. Flynn, which held a $34 million position; the fund has 1.6% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Kevin C. Tang’s Tang Capital Management, Steven Cohen’s SAC Capital Advisors and Israel Englander’s Millennium Management.

Consequently, certain bigger names were breaking ground themselves. Healthcor Management LP, managed by Arthur B Cohen and Joseph Healey, established the largest position in Nektar Therapeutics (NASDAQ:NKTR). Healthcor Management LP had 46.2 million invested in the company at the end of the quarter. James E. Flynn’s Deerfield Management also made a $34 million investment in the stock during the quarter. The other funds with new positions in the stock are Kevin C. Tang’s Tang Capital Management, Steven Cohen’s SAC Capital Advisors, and Israel Englander’s Millennium Management.

How have insiders been trading Nektar Therapeutics (NASDAQ:NKTR)?

Insider buying is best served when the company in focus has experienced transactions within the past half-year. Over the last six-month time frame, Nektar Therapeutics (NASDAQ:NKTR) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll go over the relationship between both of these indicators in other stocks similar to Nektar Therapeutics (NASDAQ:NKTR). These stocks are Santarus, Inc. (NASDAQ:SNTS), Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX), Sarepta Therapeutics Inc (NASDAQ:SRPT), ImmunoGen, Inc. (NASDAQ:IMGN), and Acorda Therapeutics Inc (NASDAQ:ACOR). This group of stocks belong to the biotechnology industry and their market caps are closest to NKTR’s market cap.

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.