Is Antares Pharma Inc (NASDAQ:ATRS) undervalued? The best stock pickers are getting more bullish. The number of long hedge fund positions advanced by 2 lately.
In the eyes of most shareholders, hedge funds are perceived as worthless, old financial vehicles of the past. While there are more than 8000 funds in operation at present, we at Insider Monkey hone in on the elite of this group, around 450 funds. It is estimated that this group oversees the lion’s share of the smart money’s total asset base, and by watching their highest performing equity investments, we have determined a number of investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).
Just as key, bullish insider trading activity is a second way to break down the financial markets. There are a variety of stimuli for a bullish insider to drop shares of his or her company, but only one, very clear reason why they would initiate a purchase. Various empirical studies have demonstrated the valuable potential of this tactic if you understand where to look (learn more here).
With these “truths” under our belt, it’s important to take a look at the latest action encompassing Antares Pharma Inc (NASDAQ:ATRS).
Hedge fund activity in Antares Pharma Inc (NASDAQ:ATRS)
At the end of the first quarter, a total of 9 of the hedge funds we track held long positions in this stock, a change of 29% from the first quarter. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their stakes considerably.
Of the funds we track, OrbiMed Advisors, managed by Samuel Isaly, holds the biggest position in Antares Pharma Inc (NASDAQ:ATRS). OrbiMed Advisors has a $34.3 million position in the stock, comprising 0.8% of its 13F portfolio. Coming in second is Deerfield Management, managed by James E. Flynn, which held a $33.7 million position; 2% of its 13F portfolio is allocated to the company. Other peers that are bullish include Israel Englander’s Millennium Management, Mark Kingdon’s Kingdon Capital and Cliff Asness’s AQR Capital Management.
Consequently, key hedge funds have been driving this bullishness. Millennium Management, managed by Israel Englander, created the largest position in Antares Pharma Inc (NASDAQ:ATRS). Millennium Management had 2.3 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also initiated a $0.1 million position during the quarter. The only other fund with a new position in the stock is D. E. Shaw’s D E Shaw.
What do corporate executives and insiders think about Antares Pharma Inc (NASDAQ:ATRS)?
Bullish insider trading is most useful when the company in question has experienced transactions within the past six months. Over the latest 180-day time period, Antares Pharma Inc (NASDAQ:ATRS) has seen zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Antares Pharma Inc (NASDAQ:ATRS). These stocks are Luminex Corporation (NASDAQ:LMNX), OraSure Technologies, Inc. (NASDAQ:OSUR), Atrion Corporation (NASDAQ:ATRI), Merit Medical Systems, Inc. (NASDAQ:MMSI), and AngioDynamics, Inc. (NASDAQ:ANGO). All of these stocks are in the medical instruments & supplies industry and their market caps are closest to ATRS’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Luminex Corporation (NASDAQ:LMNX) | 8 | 2 | 2 |
| OraSure Technologies, Inc. (NASDAQ:OSUR) | 16 | 0 | 1 |
| Atrion Corporation (NASDAQ:ATRI) | 3 | 0 | 0 |
| Merit Medical Systems, Inc. (NASDAQ:MMSI) | 11 | 0 | 0 |
| AngioDynamics, Inc. (NASDAQ:ANGO) | 11 | 3 | 1 |
With the returns demonstrated by Insider Monkey’s research, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Antares Pharma Inc (NASDAQ:ATRS) is an important part of this process.
