In the 21st century investor’s toolkit, there are plenty of gauges shareholders can use to track the equity markets. Some of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite fund managers can trounce the S&P 500 by a significant margin (see just how much).
Equally as crucial, optimistic insider trading sentiment is another way to look at the stock market universe. As the old adage goes: there are lots of incentives for a bullish insider to drop shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this strategy if piggybackers understand what to do (learn more here).
Keeping this in mind, let’s analyze the recent info surrounding Myriad Genetics, Inc. (NASDAQ:MYGN).
How are hedge funds trading Myriad Genetics, Inc. (NASDAQ:MYGN)?
At Q2’s end, a total of 21 of the hedge funds we track were long in this stock, a change of 11% from the previous quarter. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were increasing their holdings meaningfully.
According to our 13F database, Chuck Royce’s Royce & Associates had the most valuable position in Myriad Genetics, Inc. (NASDAQ:MYGN), worth close to $288.7 million, comprising 0.9% of its total 13F portfolio. On Royce & Associates’s heels is Jim Simons of Renaissance Technologies, with a $61.2 million position; 0.2% of its 13F portfolio is allocated to the company. Other hedge funds that hold long positions include D. E. Shaw’s D E Shaw, Glenn Russell Dubin’s Highbridge Capital Management and Phill Gross and Robert Atchinson’s Adage Capital Management.
As aggregate interest spiked, particular hedge funds have jumped into Myriad Genetics, Inc. (NASDAQ:MYGN) headfirst. Royce & Associates, managed by Chuck Royce, initiated the biggest position in Myriad Genetics, Inc. (NASDAQ:MYGN). Royce & Associates had 288.7 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also initiated a $61.2 million position during the quarter. The other funds with brand new MYGN positions are D. E. Shaw’s D E Shaw, Glenn Russell Dubin’s Highbridge Capital Management, and Phill Gross and Robert Atchinson’s Adage Capital Management.
What do corporate executives and insiders think about Myriad Genetics, Inc. (NASDAQ:MYGN)?
Insider buying is at its handiest when the company in focus has seen transactions within the past six months. Over the last half-year time frame, Myriad Genetics, Inc. (NASDAQ:MYGN) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Myriad Genetics, Inc. (NASDAQ:MYGN). These stocks are National Technical Systems, Inc. (NASDAQ:NTSC), National Research Corporation (NASDAQ:NRCI), Forrester Research, Inc. (NASDAQ:FORR), Qiagen NV (NASDAQ:QGEN), and Acacia Research Corporation (NASDAQ:ACTG). This group of stocks are the members of the research services industry and their market caps match MYGN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| National Technical Systems, Inc. (NASDAQ:NTSC) | 3 | 0 | 0 |
| National Research Corporation (NASDAQ:NRCI) | 0 | 0 | |
| Forrester Research, Inc. (NASDAQ:FORR) | 11 | 0 | 0 |
| Qiagen NV (NASDAQ:QGEN) | 11 | 0 | 0 |
| Acacia Research Corporation (NASDAQ:ACTG) | 20 | 0 | 0 |
Using the returns explained by Insider Monkey’s tactics, average investors should always pay attention to hedge fund and insider trading activity, and Myriad Genetics, Inc. (NASDAQ:MYGN) applies perfectly to this mantra.
