Palomar Medical Technologies Inc (NASDAQ:PMTI) has experienced a decrease in hedge fund interest lately.
At the moment, there are plenty of indicators investors can use to watch the equity markets. A pair of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite investment managers can outclass the market by a solid margin (see just how much).
Equally as key, positive insider trading activity is another way to parse down the marketplace. As the old adage goes: there are a variety of motivations for a bullish insider to drop shares of his or her company, but only one, very clear reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the useful potential of this strategy if investors know where to look (learn more here).
Now, it’s important to take a glance at the latest action encompassing Palomar Medical Technologies Inc (NASDAQ:PMTI).
Hedge fund activity in Palomar Medical Technologies Inc (NASDAQ:PMTI)
In preparation for this year, a total of 5 of the hedge funds we track held long positions in this stock, a change of -17% from the third quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes considerably.
When looking at the hedgies we track, Edward Goodnow’s Goodnow Investment Group had the most valuable position in Palomar Medical Technologies Inc (NASDAQ:PMTI), worth close to $7.1 million, accounting for 1.6% of its total 13F portfolio. The second largest stake is held by GAMCO Investors, managed by Mario Gabelli, which held a $2.3 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining hedgies that are bullish include Jim Simons’s Renaissance Technologies, Mark Broach’s Manatuck Hill Partners and John Overdeck and David Siegel’s Two Sigma Advisors.
Because Palomar Medical Technologies Inc (NASDAQ:PMTI) has experienced bearish sentiment from the smart money, we can see that there was a specific group of money managers who sold off their entire stakes heading into 2013. At the top of the heap, Israel Englander’s Millennium Management said goodbye to the biggest investment of the “upper crust” of funds we monitor, comprising close to $0.2 million in stock. These transactions are important to note, as aggregate hedge fund interest was cut by 1 funds heading into 2013.
Insider trading activity in Palomar Medical Technologies Inc (NASDAQ:PMTI)
Insider trading activity, especially when it’s bullish, is best served when the company in question has experienced transactions within the past half-year. Over the last 180-day time frame, Palomar Medical Technologies Inc (NASDAQ:PMTI) has seen 1 unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Palomar Medical Technologies Inc (NASDAQ:PMTI). These stocks are Accuray Incorporated (NASDAQ:ARAY), PhotoMedex Inc (NASDAQ:PHMD), RTI Biologics Inc. (NASDAQ:RTIX), Navidea Biopharmaceuticals Inc (NYSEAMEX:NAVB), and Exactech, Inc. (NASDAQ:EXAC). This group of stocks belong to the medical appliances & equipment industry and their market caps resemble PMTI’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Accuray Incorporated (NASDAQ:ARAY) | 13 | 2 | 4 |
| PhotoMedex Inc (NASDAQ:PHMD) | 4 | 0 | 2 |
| RTI Biologics Inc. (NASDAQ:RTIX) | 14 | 0 | 1 |
| Navidea Biopharmaceuticals Inc (NYSEAMEX:NAVB) | 3 | 6 | 1 |
| Exactech, Inc. (NASDAQ:EXAC) | 4 | 0 | 6 |
With the returns demonstrated by our research, everyday investors must always keep an eye on hedge fund and insider trading activity, and Palomar Medical Technologies Inc (NASDAQ:PMTI) shareholders fit into this picture quite nicely.
