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.

Should You Avoid Gentiva Health Services, Inc. (GTIV)?

Is Gentiva Health Services, Inc. (NASDAQ:GTIV) a good investment?

In today’s marketplace, there are tons of metrics investors can use to watch Mr. Market. A duo of the most useful are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best money managers can beat the market by a solid margin (see just how much).

Equally as useful, positive insider trading sentiment is another way to analyze the marketplace. Just as you’d expect, there are plenty of incentives for an upper level exec to cut shares of his or her company, but only one, very simple reason why they would behave bullishly. Several academic studies have demonstrated the impressive potential of this method if you understand where to look (learn more here).

Keeping this in mind, let’s analyze the latest info surrounding Gentiva Health Services, Inc. (NASDAQ:GTIV).

Hedge fund activity in Gentiva Health Services, Inc. (NASDAQ:GTIV)

At Q2’s end, a total of 16 of the hedge funds we track held long positions in this stock, a change of -11% from the first quarter. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were upping their holdings substantially.

Gentiva Health Services, Inc. (NASDAQ:GTIV)According to our 13F database, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the biggest position in Gentiva Health Services, Inc. (NASDAQ:GTIV). Adage Capital Management has a $11.4 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is Cliff Asness of AQR Capital Management, with a $10.7 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining hedge funds that hold long positions include Mario Gabelli’s GAMCO Investors, David Dreman’s Dreman Value Management and Joel Greenblatt’s Gotham Asset Management.

As Gentiva Health Services, Inc. (NASDAQ:GTIV) has experienced bearish sentiment from the top-tier hedge fund industry, we can see that there lies a certain “tier” of money managers that slashed their entire stakes last quarter. At the top of the heap, Neil Chriss’s Hutchin Hill Capital dumped the largest investment of the “upper crust” of funds we key on, comprising close to $0.6 million in stock, and Phil Frohlich of Prescott Group Capital Management was right behind this move, as the fund dropped about $0.4 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest was cut by 2 funds last quarter.

What have insiders been doing with Gentiva Health Services, Inc. (NASDAQ:GTIV)?

Legal insider trading, particularly when it’s bullish, is at its handiest when the company in focus has experienced transactions within the past 180 days. Over the last half-year time period, Gentiva Health Services, Inc. (NASDAQ:GTIV) has experienced 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 Gentiva Health Services, Inc. (NASDAQ:GTIV). These stocks are Chemed Corporation (NYSE:CHE), Addus Homecare Corporation (NASDAQ:ADUS), Almost Family, Inc. (NASDAQ:AFAM), LHC Group, Inc. (NASDAQ:LHCG), and Amedisys Inc (NASDAQ:AMED). This group of stocks are the members of the home health care industry and their market caps are similar to GTIV’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.
Loading...