Supernus Pharmaceuticals Inc (NASDAQ:SUPN) has seen an increase in activity from the world’s largest hedge funds of late.
In the 21st century investor’s toolkit, there are dozens of metrics investors can use to watch stocks. A couple of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best investment managers can beat the S&P 500 by a superb margin (see just how much).
Equally as integral, bullish insider trading sentiment is a second way to parse down the world of equities. Just as you’d expect, there are a variety of motivations for a bullish insider to drop shares of his or her company, but only one, very clear reason why they would initiate a purchase. Plenty of academic studies have demonstrated the valuable potential of this method if shareholders understand what to do (learn more here).
Consequently, let’s take a look at the latest action regarding Supernus Pharmaceuticals Inc (NASDAQ:SUPN).
What does the smart money think about Supernus Pharmaceuticals Inc (NASDAQ:SUPN)?
At the end of the fourth quarter, a total of 6 of the hedge funds we track were long in this stock, a change of 200% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings significantly.
When looking at the hedgies we track, Samuel Isaly’s OrbiMed Advisors had the biggest position in Supernus Pharmaceuticals Inc (NASDAQ:SUPN), worth close to $23.7 million, accounting for 0.7% of its total 13F portfolio. The second largest stake is held by Perceptive Advisors, managed by Joseph Edelman, which held a $3.9 million position; the fund has 0.7% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Anand Parekh’s Alyeska Investment Group, Israel Englander’s Millennium Management and D. E. Shaw’s D E Shaw.
As industrywide interest jumped, specific money managers have been driving this bullishness. Perceptive Advisors, managed by Joseph Edelman, created the most valuable position in Supernus Pharmaceuticals Inc (NASDAQ:SUPN). Perceptive Advisors had 3.9 million invested in the company at the end of the quarter. Anand Parekh’s Alyeska Investment Group also initiated a $3.6 million position during the quarter. The other funds with new positions in the stock are D. E. Shaw’s D E Shaw and Mike Vranos’s Ellington.
What do corporate executives and insiders think about Supernus Pharmaceuticals Inc (NASDAQ:SUPN)?
Insider trading activity, especially when it’s bullish, is most useful when the primary stock in question has experienced transactions within the past half-year. Over the last six-month time frame, Supernus Pharmaceuticals Inc (NASDAQ:SUPN) has experienced 4 unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Supernus Pharmaceuticals Inc (NASDAQ:SUPN). These stocks are Ligand Pharmaceuticals Inc. (NASDAQ:LGND), Galectin Therapeutics Inc. (NASDAQ:GALT), Sagent Pharmaceuticals Inc (NASDAQ:SGNT), Hi-Tech Pharmacal Co. (NASDAQ:HITK), and Avanir Pharmaceuticals, Inc. (NASDAQ:AVNR). This group of stocks are in the drugs – generic industry and their market caps are similar to SUPN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Ligand Pharmaceuticals Inc. (NASDAQ:LGND) | 5 | 6 | 1 |
| Galectin Therapeutics Inc. (NASDAQ:GALT) | 1 | 1 | 0 |
| Sagent Pharmaceuticals Inc (NASDAQ:SGNT) | 11 | 0 | 1 |
| Hi-Tech Pharmacal Co. (NASDAQ:HITK) | 11 | 0 | 5 |
| Avanir Pharmaceuticals, Inc. (NASDAQ:AVNR) | 4 | 1 | 2 |
With the results shown by the aforementioned tactics, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Supernus Pharmaceuticals Inc (NASDAQ:SUPN) applies perfectly to this mantra.
