Receptos Inc (RCPT) Up On Bullish Takeover Report: Is It A Buy Now?

How are hedge funds trading Receptos Inc (NASDAQ:RCPT)?

As pointed out earlier, hedge fund sentiment was negative, with only 34 hedge fund positions in the stock at the end of the first quarter. There was 38 hedge funds with positions in the stock at the end of Q4. This indicates that many hedge funds sold some of their stakes in the stock and some hedge funds even bid good bye to the stock by selling their entire stake in the company.

Among the hedge funds tracked by Insider Monkey, Viking Global, managed by Andreas Halvorsen, holds the largest position in Receptos Inc (NASDAQ:RCPT). Viking Global hold around 951,078 Receptos shares valued at $156.8 million, which accounts for 0.6% of Viking Global’s total 13F portfolio. The second-largest holding in Receptos is by Phill Gross and Robert Atchinson of Adage Capital Management, with 482,979 shares at $79.6 million. This accounts for 0.2% of its 13F portfolio. Other hedgies that are bullish comprise Israel Englander‘s Millennium Management, Bihua Chen’s Cormorant Asset Management, and Jacob Gottlieb’s Visium Asset Management.

Declining interest in the stock by hedge funds might suggest that some hedge funds decided to bid good bye to the stock by selling their entire stake in the company. It’s worth mentioning that Zach Schreiber’s Point State Capital dropped the largest investment of the “upper crust” of funds monitored by Insider Monkey. Zach Schreiber’s hedge fund sold all 385,000 shares in previously held in Receptos. Jason Karp of Tourbillon Capital Partners also sold all of his 385,000 Receptos shares, which were valued at $47.2 million at the end of 2014. These bearish behaviors are interesting, as total hedge fund interest was cut by 4 funds heading into Q2.

Overall insider sentiment and hedge fund sentiment was negative for Receptos Inc (NASDAQ:RCPT), while analysts are bullish, though perhaps in a broadly speculative way. Despite the bullish analyst price targets, we don’t recommend buying the stock at this time.

Disclosure: None