Synta Pharmaceuticals Corp. (NASDAQ:SNTA) has seen an increase in hedge fund sentiment recently.
In the 21st century investor’s toolkit, there are plenty of metrics shareholders can use to monitor their holdings. A pair of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite fund managers can outclass the broader indices by a solid amount (see just how much).
Equally as integral, positive insider trading activity is a second way to break down the stock market universe. Just as you’d expect, there are a variety of stimuli for a bullish insider to get rid of shares of his or her company, but just one, very obvious reason why they would buy. Several academic studies have demonstrated the impressive potential of this tactic if you understand where to look (learn more here).
Now, it’s important to take a look at the recent action regarding Synta Pharmaceuticals Corp. (NASDAQ:SNTA).
How have hedgies been trading Synta Pharmaceuticals Corp. (NASDAQ:SNTA)?
In preparation for this year, a total of 12 of the hedge funds we track were long in this stock, a change of 9% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their stakes significantly.
When looking at the hedgies we track, Julian Baker and Felix Baker’s Baker Bros. Advisors had the biggest position in Synta Pharmaceuticals Corp. (NASDAQ:SNTA), worth close to $13.2 million, accounting for 0.3% of its total 13F portfolio. On Baker Bros. Advisors’s heels is QVT Financial, managed by Daniel Gold, which held a $12.1 million position; the fund has 0.8% of its 13F portfolio invested in the stock. Remaining hedge funds that hold long positions include Richard Driehaus’s Driehaus Capital, Joseph Edelman’s Perceptive Advisors and Mark Broach’s Manatuck Hill Partners.
With a general bullishness amongst the heavyweights, key money managers have jumped into Synta Pharmaceuticals Corp. (NASDAQ:SNTA) headfirst. Manatuck Hill Partners, managed by Mark Broach, established the largest position in Synta Pharmaceuticals Corp. (NASDAQ:SNTA). Manatuck Hill Partners had 7.1 million invested in the company at the end of the quarter. Sean Cullinan’s Point State Capital also made a $1.8 million investment in the stock during the quarter. The other funds with brand new SNTA positions are Cliff Asness’s AQR Capital Management and Mike Vranos’s Ellington.
How have insiders been trading Synta Pharmaceuticals Corp. (NASDAQ:SNTA)?
Bullish insider trading is particularly usable when the company in focus has seen transactions within the past 180 days. Over the last six-month time period, Synta Pharmaceuticals Corp. (NASDAQ:SNTA) has seen 2 unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Synta Pharmaceuticals Corp. (NASDAQ:SNTA). These stocks are Trinity Biotech plc (ADR) (NASDAQ:TRIB), Meridian Bioscience, Inc. (NASDAQ:VIVO), SurModics, Inc. (NASDAQ:SRDX), Quidel Corporation (NASDAQ:QDEL), and AMAG Pharmaceuticals, Inc. (NASDAQ:AMAG). This group of stocks are the members of the diagnostic substances industry and their market caps resemble SNTA’s market cap.