Radius Health Inc (RDUS) Up On Positive Trial Data: Should You Buy?

How have hedgies been trading Radius Health Inc (NASDAQ:RDUS)?

At Q1’s end, a total of 19 of the hedge funds tracked by Insider Monkey held long positions in this stock, a big gain of 111% from the end of the fourth quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their stakes significantly.

Of the funds tracked by Insider Monkey, Brookside Capital had the biggest position in Radius Health Inc with shares worth $93 million comprising 2.34% of its total 13F portfolio. The second largest stake is held by Steve Cohen‘s Point72 Asset Management, L.P. with shares worth $49 million comprising 0.34% of its total 13F portfolio, followed by Thomas Steyer’s Farallon Capital and Partner Fund Management. Likewise, there were some funds taking up new positions in the stock, with the largest new position belonging to Jason Karp‘s Tourbillon Capital Partners, consisting of 325,000 shares with a value of $13.38 million. Jim Simons’ Renaissance Technologies has the next largest new position, of 133,000 shares.

If we look ahead, we might see that analysts are bullish on the potential for abaloparatide, and the highest level of sales estimates are pretty close to or maybe a little above a billion dollars. Radius Health Inc (NASDAQ:RDUS) will have to do a lot before it can earn any revenue from this drug but today’s announcement is certainly a good sign for the company. Investors should keep in mind that Radius is still a high-risk company which is currently burning more than $60 million in operating cash per year as it works to develop abaloparatide.

So with Radius making a strong effort to enter a big market, and insider and hedge fund sentiment being slightly positive, we give a cautious ‘Buy’ recommendation on the stock.

Disclosure: None