The Medicines Company (NASDAQ:MDCO) has experienced an increase in hedge fund sentiment recently.
At the moment, there are a multitude of metrics investors can use to analyze their holdings. A duo of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best money managers can outpace the broader indices by a superb margin (see just how much).
Equally as key, positive insider trading sentiment is a second way to break down the investments you’re interested in. There are many stimuli for an insider to drop shares of his or her company, but only one, very simple reason why they would buy. Various empirical studies have demonstrated the market-beating potential of this method if piggybackers understand what to do (learn more here).
Consequently, we’re going to take a glance at the key action surrounding The Medicines Company (NASDAQ:MDCO).
Hedge fund activity in The Medicines Company (NASDAQ:MDCO)
At Q1’s end, a total of 20 of the hedge funds we track held long positions in this stock, a change of 5% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were increasing their stakes significantly.
Of the funds we track, Royce & Associates, managed by Chuck Royce, holds the most valuable position in The Medicines Company (NASDAQ:MDCO). Royce & Associates has a $117.5 million position in the stock, comprising 0.4% of its 13F portfolio. The second largest stake is held by SAC Capital Advisors, managed by Steven Cohen, which held a $78.1 million position; 0.4% of its 13F portfolio is allocated to the company. Remaining hedgies with similar optimism include Sean Cullinan’s Point State Capital, Arthur B Cohen and Joseph Healey’s Healthcor Management LP and Dmitry Balyasny’s Balyasny Asset Management.
Consequently, key money managers have jumped into The Medicines Company (NASDAQ:MDCO) headfirst. Healthcor Management LP, managed by Arthur B Cohen and Joseph Healey, created the most valuable position in The Medicines Company (NASDAQ:MDCO). Healthcor Management LP had 29.2 million invested in the company at the end of the quarter. Donald Chiboucis’s Columbus Circle Investors also made a $12.6 million investment in the stock during the quarter. The other funds with brand new MDCO positions are Mark Broach’s Manatuck Hill Partners, Arthur B Cohen and Joseph Healey’s Healthcor Management LP, and George Soros’s Soros Fund Management.
How are insiders trading The Medicines Company (NASDAQ:MDCO)?
Insider buying is best served when the company in focus has experienced transactions within the past half-year. Over the last half-year time period, The Medicines Company (NASDAQ:MDCO) has seen zero unique insiders buying, and 8 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to The Medicines Company (NASDAQ:MDCO). These stocks are United Therapeutics Corporation (NASDAQ:UTHR), Cubist Pharmaceuticals Inc (NASDAQ:CBST), Amarin Corporation plc (ADR) (NASDAQ:AMRN), Taro Pharmaceutical Industries Ltd. (NYSE:TARO), and ISIS Pharmaceuticals, Inc. (NASDAQ:ISIS). This group of stocks are the members of the drug manufacturers – other industry and their market caps resemble MDCO’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| United Therapeutics Corporation (NASDAQ:UTHR) | 13 | 1 | 7 |
| Cubist Pharmaceuticals Inc (NASDAQ:CBST) | 22 | 0 | 8 |
| Amarin Corporation plc (ADR) (NASDAQ:AMRN) | 19 | 0 | 0 |
| Taro Pharmaceutical Industries Ltd. (NYSE:TARO) | 8 | 0 | 0 |
| ISIS Pharmaceuticals, Inc. (NASDAQ:ISIS) | 14 | 0 | 8 |
With the results demonstrated by the aforementioned studies, everyday investors must always pay attention to hedge fund and insider trading activity, and The Medicines Company (NASDAQ:MDCO) applies perfectly to this mantra.
