Arena Pharmaceuticals, Inc. (ARNA): The Short Data You Need To See

Nowadays, there are a multitude of indicators for Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) readers to pay attention to, but it’s key to monitor a stock’s short sellers. Some pieces of data typically used are: (a) the chunk of a stock’s float that short sellers are currently short selling, in addition to (b) the change in short interest.

An increased amount of shorting typically indicates what you’d think: Wall Street has become less fond of a company. Overselling, though, sometimes has a bullish effect on stock price, as short sellers may be forced to buy their stock.

Within our database, it’s not a secret that we monitor hedge fund interest, but it’s also important to group this information with overall short sale information. In some high-profile cases, large players may disclose that they’re short on a company, but it isn’t an SEC requirement. Nevertheless, some retail players might wish to avoid highly shorted companies with elevated hedge fund investment, while others might prefer short-squeeze opportunities. For those searching for a proven piggybacking strategy, discover the details of our premium strategy.

Let us take a gander at the key data swirling around Arena Pharmaceuticals, Inc. (NASDAQ:ARNA).

Tracking the newest FINRA short interest data, which is reported twice a month, we can see that Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) has a short interest of 27.50% of float. This indicates a 0.4% change from the prior filing period. With a total float of 216.62M shares, this reveals a short ratio of 10.10.

It is also crucial to take note of hedge fund holdings via their 13F forms. When analyzing the funds we track, Deerfield Management, managed by James E. Flynn, holds the most valuable position in Arena Pharmaceuticals, Inc. (NASDAQ:ARNA). Deerfield Management has a $43.9 million position in the stock, comprising 2.6% of its 13F portfolio. Coming in second is Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, which held a $7.7 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedgies that hold long positions include Daniel Gold’s QVT Financial, and Robert Pohly’s Samlyn Capital.

Also, insider purchases made by high-level executives is best served when the company in focus has seen transactions within the past six months. Over the latest 180-day time period, Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) has experienced zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

Let’s also examine activity in other stocks similar to Arena Pharmaceuticals, Inc. (NASDAQ:ARNA). These stocks are Charles River Laboratories (NYSE:CRL), Synageva BioPharma Corp (NASDAQ:GEVA), Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), Viropharma Inc (NASDAQ:VPHM), and Questcor Pharmaceuticals Inc (NASDAQ:QCOR). This group of stocks are in the biotechnology industry and their market caps match ARNA’s market cap.

These indicators–short sale information, hedge fund data and insider sentiment–are what all readers should pay attention to. Although it is hard to discover a practical strategy from short selling information, hedgie and insider sentiment provide plenty of market beating opportunities if you know where to look.