Hedge Funds Are Buying Cyberonics, Inc. (CYBX)

Cyberonics, Inc. (NASDAQ:CYBX) was in 25 hedge funds’ portfolio at the end of March. CYBX investors should pay attention to an increase in support from the world’s most elite money managers lately. There were 18 hedge funds in our database with CYBX holdings at the end of the previous quarter.

In the financial world, there are tons of methods investors can use to watch publicly traded companies. A pair of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top hedge fund managers can outperform their index-focused peers by a very impressive margin (see just how much).

Equally as beneficial, bullish insider trading activity is another way to parse down the investments you’re interested in. There are lots of motivations for an insider to cut shares of his or her company, but just one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the impressive potential of this tactic if investors know what to do (learn more here).

Now, let’s take a peek at the key action encompassing Cyberonics, Inc. (NASDAQ:CYBX).

How have hedgies been trading Cyberonics, Inc. (NASDAQ:CYBX)?

Heading into Q2, a total of 25 of the hedge funds we track were bullish in this stock, a change of 39% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were upping their holdings meaningfully.

According to our comprehensive database, Renaissance Technologies, managed by Jim Simons, holds the most valuable position in Cyberonics, Inc. (NASDAQ:CYBX). Renaissance Technologies has a $91.5 million position in the stock, comprising 0.2% of its 13F portfolio. On Renaissance Technologies’s heels is Palo Alto Investors, managed by William Leland Edwards, which held a $90.4 million position; the fund has 10.7% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Donald Chiboucis’s Columbus Circle Investors, Ken Griffin’s Citadel Investment Group and Jacob Gottlieb’s Visium Asset Management.

Consequently, key hedge funds were breaking ground themselves. Visium Asset Management, managed by Jacob Gottlieb, established the biggest position in Cyberonics, Inc. (NASDAQ:CYBX). Visium Asset Management had 28.4 million invested in the company at the end of the quarter. SAC Subsidiary’s CR Intrinsic Investors also made a $11.2 million investment in the stock during the quarter. The following funds were also among the new CYBX investors: Jeremy Green’s Redmile Group, Steven Cohen’s SAC Capital Advisors, and Glenn Russell Dubin’s Highbridge Capital Management.

How are insiders trading Cyberonics, Inc. (NASDAQ:CYBX)?

Insider buying is best served when the company in focus has experienced transactions within the past 180 days. Over the last six-month time frame, Cyberonics, Inc. (NASDAQ:CYBX) has experienced 5 unique insiders buying, and 13 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Cyberonics, Inc. (NASDAQ:CYBX). These stocks are CONMED Corporation (NASDAQ:CNMD), ArthroCare Corporation (NASDAQ:ARTC), Masimo Corporation (NASDAQ:MASI), Volcano Corporation (NASDAQ:VOLC), and Globus Medical Inc (NYSE:GMED). This group of stocks are in the medical appliances & equipment industry and their market caps are closest to CYBX’s market cap.

With the results exhibited by Insider Monkey’s time-tested strategies, retail investors must always watch hedge fund and insider trading sentiment, and Cyberonics, Inc. (NASDAQ:CYBX) is an important part of this process.

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