In today’s marketplace, there are many metrics market participants can use to track publicly traded companies. A pair of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top hedge fund managers can trounce the broader indices by a very impressive amount (see just how much).
Just as necessary, positive insider trading sentiment is another way to analyze the world of equities. As the old adage goes: there are many motivations for an upper level exec to cut shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Various academic studies have demonstrated the market-beating potential of this method if piggybackers understand where to look (learn more here).
Keeping this in mind, we’re going to examine the newest info surrounding Pharmacyclics, Inc. (NASDAQ:PCYC).
How have hedgies been trading Pharmacyclics, Inc. (NASDAQ:PCYC)?
In preparation for the third quarter, a total of 27 of the hedge funds we track were bullish in this stock, a change of 17% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were upping their holdings significantly.
According to our 13F database, Baker Bros. Advisors, managed by Julian Baker and Felix Baker, holds the most valuable position in Pharmacyclics, Inc. (NASDAQ:PCYC). Baker Bros. Advisors has a $856 million position in the stock, comprising 16.9% of its 13F portfolio. The second largest stake is held by Donald Chiboucis of Columbus Circle Investors, with a $94.9 million position; 0.8% of its 13F portfolio is allocated to the company. Other hedgies with similar optimism include Daniel Gold’s QVT Financial, Steven Cohen’s SAC Capital Advisors and Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management.
As aggregate interest spiked, certain bigger names were breaking ground themselves. Baker Bros. Advisors, managed by Julian Baker and Felix Baker, assembled the largest position in Pharmacyclics, Inc. (NASDAQ:PCYC). Baker Bros. Advisors had 856 million invested in the company at the end of the quarter. Donald Chiboucis’s Columbus Circle Investors also initiated a $94.9 million position during the quarter. The other funds with new positions in the stock are Daniel Gold’s QVT Financial, Steven Cohen’s SAC Capital Advisors, and JΘr⌠me Pfund and Michael Michael Sjostrom’s Sectoral Asset Management.
What have insiders been doing with Pharmacyclics, Inc. (NASDAQ:PCYC)?
Legal insider trading, particularly when it’s bullish, is most useful when the primary stock in question has experienced transactions within the past 180 days. Over the last 180-day time frame, Pharmacyclics, Inc. (NASDAQ:PCYC) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Pharmacyclics, Inc. (NASDAQ:PCYC). These stocks are United Therapeutics Corporation (NASDAQ:UTHR), Forest Laboratories, Inc. (NYSE:FRX), Warner Chilcott Plc (NASDAQ:WCRX), Endo Health Solutions Inc (NASDAQ:ENDP), and Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY). All of these stocks are in the drug manufacturers – other industry and their market caps match PCYC’s market cap.