The Female Health Company (FHCO): Hedge Funds and Insiders Are Bullish, What Should You Do?

The Female Health Company (NASDAQ:FHCO) has experienced an increase in enthusiasm from smart money of late.

In the financial world, there are plenty of metrics shareholders can use to track publicly traded companies. A couple of the best are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite fund managers can outpace the broader indices by a superb amount (see just how much).

The Female Health Company (NASDAQ:FHCO)

Equally as integral, bullish insider trading activity is another way to break down the stock market universe. As the old adage goes: there are plenty of motivations for a corporate insider to sell shares of his or her company, but just one, very simple reason why they would behave bullishly. Many empirical studies have demonstrated the valuable potential of this tactic if piggybackers understand what to do (learn more here).

With all of this in mind, we’re going to take a gander at the key action encompassing The Female Health Company (NASDAQ:FHCO).

Hedge fund activity in The Female Health Company (NASDAQ:FHCO)

At the end of the fourth quarter, a total of 6 of the hedge funds we track were bullish in this stock, a change of 50% from the third quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes considerably.

With a general bullishness amongst the heavyweights, specific money managers have jumped into The Female Health Company (NASDAQ:FHCO) headfirst. Royce & Associates, managed by Chuck Royce, initiated the most outsized position in The Female Health Company (NASDAQ:FHCO). Royce & Associates had 3.8 million invested in the company at the end of the quarter. Robert B. Gillam’s McKinley Capital Management also initiated a $0.9 million position during the quarter.

How are insiders trading The Female Health Company (NASDAQ:FHCO)?

Insider buying is most useful when the company in question has experienced transactions within the past half-year. Over the last six-month time frame, The Female Health Company (NASDAQ:FHCO) has experienced 1 unique insiders purchasing, and 4 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to The Female Health Company (NASDAQ:FHCO). These stocks are Summer Infant, Inc. (NASDAQ:SUMR), Inter Parfums, Inc. (NASDAQ:IPAR), United-Guardian, Inc. (NASDAQ:UG), Blyth, Inc. (NYSE:BTH), and Nutraceutical Int’l Corp. (NASDAQ:NUTR). This group of stocks are the members of the personal products industry and their market caps are closest to FHCO’s market cap.