Here is What Hedge Funds and Insiders Think About Puma Biotechnology Inc (PBYI)

What’s a smart Puma Biotechnology Inc (NYSE:PBYI) investor to do?

In today’s marketplace, there are dozens of methods market participants can use to watch the equity markets. Two of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite fund managers can outperform their index-focused peers by a superb amount (see just how much).

Equally as crucial, positive insider trading activity is another way to look at the stock market universe. There are a variety of reasons for an upper level exec to downsize shares of his or her company, but just one, very clear reason why they would initiate a purchase. Several empirical studies have demonstrated the impressive potential of this strategy if piggybackers know where to look (learn more here).

Thus, it’s important to discuss the recent info surrounding Puma Biotechnology Inc (NYSE:PBYI).

How have hedgies been trading Puma Biotechnology Inc (NYSE:PBYI)?

At Q2’s end, a total of 14 of the hedge funds we track were bullish in this stock, a change of 0% from the previous quarter. With hedgies’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their holdings considerably.

According to our 13F database, Phill Gross and Robert Atchinson’s Adage Capital Management had the biggest position in Puma Biotechnology Inc (NYSE:PBYI), worth close to $232.6 million, accounting for 0.7% of its total 13F portfolio. On Adage Capital Management’s heels is Brookside Capital, managed by Bain Capital, which held a $33 million position; the fund has 0.8% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include Jeremy Green’s Redmile Group, Samuel Isaly’s OrbiMed Advisors and Ken Griffin’s Citadel Investment Group.

Due to the fact Puma Biotechnology Inc (NYSE:PBYI) has faced bearish sentiment from upper-tier hedge fund managers, we can see that there exists a select few hedgies that decided to sell off their positions entirely heading into Q2. It’s worth mentioning that Steven Cohen’s SAC Capital Advisors dumped the largest position of all the hedgies we key on, comprising about $10 million in stock. Christopher Medlock James’s fund, Partner Fund Management, also cut its stock, about $7 million worth. These moves are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Insider trading activity in Puma Biotechnology Inc (NYSE:PBYI)

Insider buying is most useful when the company in question has experienced transactions within the past 180 days. Over the latest half-year time period, Puma Biotechnology Inc (NYSE:PBYI) has seen zero unique insiders buying, 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 Puma Biotechnology Inc (NYSE:PBYI). These stocks are Exelixis, Inc. (NASDAQ:EXEL), NPS Pharmaceuticals, Inc. (NASDAQ:NPSP), PDL BioPharma Inc. (NASDAQ:PDLI), Celldex Therapeutics, Inc. (NASDAQ:CLDX), and MannKind Corporation (NASDAQ:MNKD). This group of stocks are in the biotechnology industry and their market caps resemble PBYI’s market cap.

Using the returns shown by the previously mentioned research, regular investors must always watch hedge fund and insider trading sentiment, and Puma Biotechnology Inc (NYSE:PBYI) is an important part of this process.

Discover how hedge fund piggybacking can benefit you