Is Cyberonics, Inc. (NASDAQ:CYBX) a good investment?
In today’s marketplace, there are a multitude of methods market participants can use to monitor the equity markets. Some of the most under-the-radar 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 money managers can outclass the S&P 500 by a superb margin (see just how much).
Just as crucial, optimistic insider trading activity is another way to analyze the financial markets. There are many reasons for an upper level exec to get rid of shares of his or her company, but just one, very simple reason why they would buy. Many empirical studies have demonstrated the impressive potential of this tactic if investors understand where to look (learn more here).
What’s more, let’s study the latest info surrounding Cyberonics, Inc. (NASDAQ:CYBX).
What have hedge funds been doing with Cyberonics, Inc. (NASDAQ:CYBX)?
At Q2’s end, a total of 23 of the hedge funds we track were bullish in this stock, a change of -8% from one quarter earlier. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were increasing their holdings meaningfully.
Out of the hedge funds we follow, Jim Simons’s Renaissance Technologies had the biggest position in Cyberonics, Inc. (NASDAQ:CYBX), worth close to $120.8 million, accounting for 0.3% of its total 13F portfolio. Coming in second is Palo Alto Investors, managed by William Leland Edwards, which held a $96.8 million position; 11.4% of its 13F portfolio is allocated to the company. Some other hedge funds that are bullish include Daniel Arbess’s Xerion, Brian Ashford-Russell and Tim Woolley’s Polar Capital and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.
Judging by the fact that Cyberonics, Inc. (NASDAQ:CYBX) has witnessed bearish sentiment from the smart money’s best and brightest, we can see that there exists a select few funds that elected to cut their positions entirely at the end of the second quarter. Interestingly, Steven Cohen’s SAC Capital Advisors dropped the largest investment of the “upper crust” of funds we track, valued at about $4.7 million in stock. David Costen Haley’s fund, HBK Investments, also dropped its stock, about $1.8 million worth. These moves are important to note, as aggregate hedge fund interest fell by 2 funds at the end of the second quarter.
How have insiders been trading Cyberonics, Inc. (NASDAQ:CYBX)?
Insider buying is most useful when the company in question has seen transactions within the past 180 days. Over the latest six-month time period, Cyberonics, Inc. (NASDAQ:CYBX) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Cyberonics, Inc. (NASDAQ:CYBX). These stocks are CONMED Corporation (NASDAQ:CNMD), ArthroCare Corporation (NASDAQ:ARTC), Masimo Corporation (NASDAQ:MASI), Volcano Corporation (NASDAQ:VOLC), and Globus Medical Inc (NYSE:GMED). This group of stocks belong to the medical appliances & equipment industry and their market caps are closest to CYBX’s market cap.