In today’s marketplace, there are many indicators shareholders can use to analyze Mr. Market. A pair of the most useful are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best hedge fund managers can trounce their index-focused peers by a significant amount (see just how much).
Just as beneficial, positive insider trading sentiment is another way to parse down the investments you’re interested in. Obviously, there are a variety of incentives for a corporate insider to downsize shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Various academic studies have demonstrated the useful potential of this tactic if you know what to do (learn more here).
Consequently, we’re going to take a peek at the recent action surrounding Emergent Biosolutions Inc (NYSE:EBS).
What does the smart money think about Emergent Biosolutions Inc (NYSE:EBS)?
In preparation for this year, a total of 17 of the hedge funds we track were bullish in this stock, a change of 42% from the third quarter. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were increasing their stakes substantially.
According to our comprehensive database, Mark Kingdon’s Kingdon Capital had the biggest position in Emergent Biosolutions Inc (NYSE:EBS), worth close to $17 million, accounting for 1% of its total 13F portfolio. On Kingdon Capital’s heels is D E Shaw, managed by D. E. Shaw, which held a $10 million position; the fund has 0% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include Kevin Kotler’s Broadfin Capital, Jim Simons’s Renaissance Technologies and Ken Fisher’s Fisher Asset Management.
Now, key hedge funds were leading the bulls’ herd. Kingdon Capital, managed by Mark Kingdon, initiated the most outsized position in Emergent Biosolutions Inc (NYSE:EBS). Kingdon Capital had 17 million invested in the company at the end of the quarter. SAC Subsidiary’s CR Intrinsic Investors also made a $6 million investment in the stock during the quarter. The other funds with new positions in the stock are Joel Greenblatt’s Gotham Asset Management, Malcolm Fairbairn’s Ascend Capital, and Mike Vranos’s Ellington.
How are insiders trading Emergent Biosolutions Inc (NYSE:EBS)?
Insider trading activity, especially when it’s bullish, is best served when the company we’re looking at has experienced transactions within the past 180 days. Over the latest 180-day time frame, Emergent Biosolutions Inc (NYSE:EBS) has seen zero unique insiders buying, and 1 insider sales (see the details of insider trades here).
With the results demonstrated by the aforementioned strategies, everyday investors should always monitor hedge fund and insider trading sentiment, and Emergent Biosolutions Inc (NYSE:EBS) is no exception.
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