Is it smart to be bullish on Cynosure, Inc. (NASDAQ:CYNO)?
In the eyes of many of your fellow readers, hedge funds are viewed as useless, outdated financial vehicles of a period lost to current times. Although there are over 8,000 hedge funds with their doors open in present day, Insider Monkey focuses on the elite of this group, close to 525 funds. It is assumed that this group controls the lion’s share of all hedge funds’ total assets, and by paying attention to their highest performing stock picks, we’ve identified a number of investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum 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 trumped the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Just as key, optimistic insider trading sentiment is another way to analyze the stock market universe. Obviously, there are a number of stimuli for an upper level exec to get rid of shares of his or her company, but only one, very simple reason why they would buy. Various academic studies have demonstrated the impressive potential of this tactic if “monkeys” know where to look (learn more here).
What’s more, it’s important to study the recent info for Cynosure, Inc. (NASDAQ:CYNO).
How have hedgies been trading Cynosure, Inc. (NASDAQ:CYNO)?
At Q2’s end, a total of 19 of the hedge funds we track were bullish in this stock, a change of 19% from the previous quarter. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their holdings substantially.
Now, certain money managers were leading the bulls’ herd. Broadwood Capital, managed by Neal C. Bradsher, assembled the most valuable position in Cynosure, Inc. (NASDAQ:CYNO). Broadwood Capital had 21.2 million invested in the company at the end of the quarter. Arthur B Cohen and Joseph Healey’s Healthcor Management LP also made a $15.6 million investment in the stock during the quarter. The following funds were also among the new CYNO investors: Steven Cohen’s SAC Capital Advisors, Israel Englander’s Millennium Management, and Constantinos J. Christofilis’s Archon Capital Management.
What have insiders been doing with Cynosure, Inc. (NASDAQ:CYNO)?
Legal insider trading, particularly when it’s bullish, 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, Cynosure, Inc. (NASDAQ:CYNO) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Cynosure, Inc. (NASDAQ:CYNO). These stocks are Cardiovascular Systems Inc (NASDAQ:CSII), Natus Medical Inc (NASDAQ:BABY), Invacare Corporation (NYSE:IVC), Symmetry Medical Inc. (NYSE:SMA), and GenMark Diagnostics, Inc (NASDAQ:GNMK). All of these stocks are in the medical appliances & equipment industry and their market caps are closest to CYNO’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Cardiovascular Systems Inc (NASDAQ:CSII) | 8 | 0 | 0 |
| Natus Medical Inc (NASDAQ:BABY) | 15 | 0 | 0 |
| Invacare Corporation (NYSE:IVC) | 12 | 0 | 0 |
| Symmetry Medical Inc. (NYSE:SMA) | 14 | 0 | 0 |
| GenMark Diagnostics, Inc (NASDAQ:GNMK) | 8 | 0 | 0 |
Using the results shown by the previously mentioned analyses, average investors should always keep one eye on hedge fund and insider trading sentiment, and Cynosure, Inc. (NASDAQ:CYNO) is no exception.
