Is Theravance Inc (NASDAQ:THRX) a good investment?
At the moment, there are many indicators investors can use to analyze stocks. Some 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 best picks of the best investment managers can outclass the market by a significant amount (see just how much).
Just as crucial, optimistic insider trading sentiment is another way to look at the financial markets. There are lots of incentives for an upper level exec to drop shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the valuable potential of this method if you understand where to look (learn more here).
Keeping this in mind, it’s important to analyze the newest info surrounding Theravance Inc (NASDAQ:THRX).
What have hedge funds been doing with Theravance Inc (NASDAQ:THRX)?
At Q2’s end, a total of 24 of the hedge funds we track were bullish in this stock, a change of 41% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes considerably.
When using filings from the hedgies we track, Baupost Group, managed by Seth Klarman, holds the largest position in Theravance Inc (NASDAQ:THRX). Baupost Group has a $637.2 million position in the stock, comprising 15.8% of its 13F portfolio. Coming in second is Iridian Asset Management, managed by David Cohen and Harold Levy, which held a $385.3 million call position; the fund has 4.9% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include David Cohen and Harold Levy’s Iridian Asset Management, Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management and Jamie Zimmerman’s Litespeed Management.
As aggregate interest spiked, certain bigger names have been driving this bullishness. Baupost Group, managed by Seth Klarman, created the most valuable position in Theravance Inc (NASDAQ:THRX). Baupost Group had 637.2 million invested in the company at the end of the quarter. David Cohen and Harold Levy’s Iridian Asset Management also made a $385.3 million investment in the stock during the quarter. The other funds with brand new THRX positions are David Cohen and Harold Levy’s Iridian Asset Management, Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management, and Seth Klarman’s Baupost Group.
How have insiders been trading Theravance Inc (NASDAQ:THRX)?
Legal insider trading, particularly when it’s bullish, is particularly usable when the company in focus has experienced transactions within the past half-year. Over the latest 180-day time period, Theravance Inc (NASDAQ:THRX) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to Theravance Inc (NASDAQ:THRX). These stocks are Incyte Corporation (NASDAQ:INCY), Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), Questcor Pharmaceuticals Inc (NASDAQ:QCOR), Charles River Laboratories (NYSE:CRL), and Infinity Pharmaceuticals Inc. (NASDAQ:INFI). This group of stocks belong to the biotechnology industry and their market caps match THRX’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Incyte Corporation (NASDAQ:INCY)||17||0||0|
|Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)||11||0||0|
|Questcor Pharmaceuticals Inc (NASDAQ:QCOR)||27||0||0|
|Charles River Laboratories (NYSE:CRL)||19||0||0|
|Infinity Pharmaceuticals Inc. (NASDAQ:INFI)||20||0||0|
Using the returns shown by our tactics, average investors should always keep one eye on hedge fund and insider trading sentiment, and Theravance Inc (NASDAQ:THRX) is no exception.