Is ImmunoGen, Inc. (NASDAQ:IMGN) an excellent investment now? Prominent investors are in a bearish mood. The number of bullish hedge fund bets stayed the same which is a slightly negative development in our experience
At the moment, there are tons of gauges market participants can use to track the equity markets. A couple 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 top fund managers can outperform the S&P 500 by a significant amount (see just how much).
Just as integral, bullish insider trading sentiment is a second way to break down the investments you’re interested in. Obviously, there are a variety of incentives for an upper level exec to cut shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Plenty of academic studies have demonstrated the market-beating potential of this tactic if you know where to look (learn more here).
Keeping this in mind, we’re going to take a gander at the key action encompassing ImmunoGen, Inc. (NASDAQ:IMGN).
What does the smart money think about ImmunoGen, Inc. (NASDAQ:IMGN)?
Heading into Q2, a total of 5 of the hedge funds we track held long positions in this stock, a change of 0% from the previous quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were boosting their holdings significantly.
When looking at the hedgies we track, Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management had the biggest position in ImmunoGen, Inc. (NASDAQ:IMGN), worth close to $89.9 million, comprising 2.8% of its total 13F portfolio. Sitting at the No. 2 spot is Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, which held a $1.8 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Kerr Neilson’s Platinum Asset Management, Cliff Asness’s AQR Capital Management and Ken Griffin’s Citadel Investment Group.
Since ImmunoGen, Inc. (NASDAQ:IMGN) has faced falling interest from the smart money, logic holds that there was a specific group of fund managers who sold off their positions entirely in Q1. It’s worth mentioning that Glenn Russell Dubin’s Highbridge Capital Management cut the biggest position of the “upper crust” of funds we watch, worth close to $0.2 million in call options These moves are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
What do corporate executives and insiders think about ImmunoGen, Inc. (NASDAQ:IMGN)?
Insider purchases made by high-level executives is best served when the company we’re looking at has seen transactions within the past half-year. Over the latest six-month time frame, ImmunoGen, Inc. (NASDAQ:IMGN) has seen zero unique insiders buying, and 2 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to ImmunoGen, Inc. (NASDAQ:IMGN). These stocks are Sarepta Therapeutics Inc (NASDAQ:SRPT), Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), Synageva BioPharma Corp (NASDAQ:GEVA), Nektar Therapeutics (NASDAQ:NKTR), and Acorda Therapeutics Inc (NASDAQ:ACOR). This group of stocks are in the biotechnology industry and their market caps resemble IMGN’s market cap.