This article presents an overview of Insiders Are Dumping These 10 Healthcare Stocks. For a detailed overview of such stocks, read our article, Insiders Are Dumping These 10 Healthcare Stocks.
5. Crinetics Pharmaceuticals Inc (NASDAQ:CRNX)
Number of Hedge Fund Investors: 38
Crinetics Pharmaceuticals Inc (NASDAQ:CRNX) is a clinical stage biopharma company that is working on treatments for endocrine-related diseases. Crinetics Pharmaceuticals Inc’s (NASDAQ:CRNX) Chief Operating Officer Jeff Knight on March 22 sold 30,000 shares of Crinetics Pharmaceuticals Inc (NASDAQ:CRNX) at $44.22 per share. Since then the stock is down about 2%.
As of the end of the fourth quarter of 2023, 38 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Crinetics Pharmaceuticals Inc (NASDAQ:CRNX).
4. Inspire Medical Systems Inc (NYSE:INSP)
Number of Hedge Fund Investors: 46
Inspire Medical Systems Inc (NYSE:INSP) makes treatments for Obstructive Sleep Apnea. Inspire Medical Systems Inc’s (NYSE:INSP) Chief Commercial Officer Randy Ban on February 23 sold 15,290 shares of Inspire Medical Systems Inc (NYSE:INSP) at $184.70 per share. Since then the stock price has seen a 13% rise. John Rondoni, Inspire’s CTO, sold 3,062 shares of Inspire Medical Systems Inc (NYSE:INSP) on March 22 at $194.46 per share. The stock is up 5.5% since then.
Mairs & Power Small Cap Fund stated the following regarding Inspire Medical Systems, Inc. (NYSE:INSP) in its fourth quarter 2023 investor letter:
“Looking at individual stocks, year-to-date relative underperformance was driven in part by several stocks. Inspire Medical Systems, Inc. (NYSE:INSP), a medical technology device company based in Minnesota that offers minimally invasive implants to address obstructive sleep apnea which has experienced volatility related to fears of substitution risk from GLP-1 weight loss drugs.”
3. Neurocrine Biosciences, Inc. (NASDAQ:NBIX)
Number of Hedge Fund Investors: 55
California-based biopharma company Neurocrine Biosciences, Inc. (NASDAQ:NBIX) ranks third in our list of the healthcare stocks with recent insider selling activity. Ingrid Delaet, the Chief Regulatory Officer at Neurocrine Biosciences, Inc. (NASDAQ:NBIX), on March 21 sold 5,000 shares of Neurocrine Biosciences, Inc. (NASDAQ:NBIX) at $145.06 per share. Another insider selling transaction was initiated by the Chief Commercial Officer of Neurocrine Biosciences, Inc. (NASDAQ:NBIX), Eric Benevich, on March 14. He sold 69,521 shares of Neurocrine Biosciences, Inc. (NASDAQ:NBIX) at $139.3 per share. Since then the stock is up 1.4%.
Harding Loevner Global Small Companies Equity Strategy made the following comment about Neurocrine Biosciences, Inc. (NASDAQ:NBIX) in its Q3 2023 investor letter:
“By sector, our returns in Health Care were positive but this was more than offset by poor Industrials stocks. Neurocrine Biosciences, Inc. (NASDAQ:NBIX) reported positive late-stage clinical study data for its treatment of congenital adrenal hyperplasia, a condition which causes the body to not produce enough cortisol, increasing the probability that the company can address a new estimated $1 billion market opportunity.”
2. DexCom Inc (NASDAQ:DXCM)
Number of Hedge Fund Investors: 69
Glucose monitoring systems company DexCom Inc (NASDAQ:DXCM) is one of the healthcare stocks insiders are selling. Sadie Stern, who is the Executive Vice President and Chief Human Resources Officer at DexCom Inc (NASDAQ:DXCM), on March 25 sold 4,137 shares of DexCom Inc (NASDAQ:DXCM) at $140.00 per share. Since then the stock price is almost flat.
Brown Capital Management Mid Company Fund stated the following regarding DexCom, Inc. (NASDAQ:DXCM) in its fourth quarter 2023 investor letter:
“The virtues of our patient, low-turnover approach were evident during the fourth quarter. As discussed in our last commentary, clinical-trial results from popular GLP-1 (glucagon-like peptide-1) obesity drugs showed that they lower the risk of diabetes, cardiovascular disease and other adverse health outcomes. These results were notable and as they emerged, we conducted additional research into GLP-1 drugs, for two reasons: first, to better understand the long-term efficacy of these drugs; and second, to determine the extent of the threat these drugs pose to some of our portfolio holdings.
Conversely, when the GLP-1 clinical trial data came out, investors immediately abandoned holdings like DexCom, Inc. (NASDAQ:DXCM), which manufactures and markets continuous glucose monitors, or CGMs, used to track the blood sugar of people with diabetes. Investors feared that the company’s market opportunity would shrink dramatically as the adoption of GLP-1 drugs rises. Beginning in August, after the first of the trial results came public, Dexcom declined nearly 30% peak to trough, and stock prices of many other medical device companies dropped well over 20%. However, since bottoming in mid-October, Dexcom’s stock price has rallied more than 60%. In fact, Dexcom was a top contributor during the fourth quarter, rising more than 30% and managed to close up 10% for the year after being down double-digits at one point…” (Click here to read the full text)
1. Cigna Group (NYSE:CI)
Number of Hedge Fund Investors: 76
Insurance giant Cigna Group’s (NYSE:CI) President and CEO David Cordani on March 25 sold 31,209 shares of Cigna Group (NYSE:CI) at $355.17 per share. Since then the stock price ticked up 0.61%.
Here is what Davis New York Venture Fund has to say about The Cigna Group (NYSE:CI) in its Q3 2023 investor letter:
“In the attractive healthcare sector, we look beyond the obvious to identify businesses that simultaneously have exposure to this growth industry and also trade at low prices. We’re especially drawn to companies like Cigna Group, whose products or services play a part in helping to mitigate healthcare’s constantly rising costs. The healthcare industry has been a growing part of the U.S. economy for decades. As a result, many companies in this sector trade at high valuations reflecting their robust but well-known reputation for growth. For value-conscious investors like us, investing in healthcare requires looking beyond the obvious to identify businesses that have exposure to this growth industry but which trade at low prices. Furthermore, recognizing that the constantly rising cost of healthcare cannot go on forever, we have been particularly drawn to companies whose products or services play some role in managing or reducing the cost of care. As a result, we have positions in Cigna Group, a well-regarded provider of managed care.
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