Mednax Inc. (MD): Hedge Fund and Insider Sentiment Unchanged, What Should You Do?

Should Mednax Inc. (NYSE:MD) investors track the following data?

To the average investor, there are many indicators market participants can use to analyze their holdings. A duo of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best hedge fund managers can trounce the broader indices by a healthy margin (see just how much).

Equally as useful, positive insider trading activity is another way to look at the stock market universe. Just as you’d expect, there are a number of reasons for an executive to drop shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the valuable potential of this method if piggybackers understand what to do (learn more here).

Thus, it’s important to analyze the newest info for Mednax Inc. (NYSE:MD).

What does the smart money think about Mednax Inc. (NYSE:MD)?

Heading into Q3, a total of 14 of the hedge funds we track held long positions in this stock, a change of 0% from the first quarter. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their holdings considerably.

When using filings from the hedgies we track, Royce & Associates, managed by Chuck Royce, holds the biggest position in Mednax Inc. (NYSE:MD). Royce & Associates has a $95.8 million position in the stock, comprising 0.3% of its 13F portfolio. Coming in second is D. E. Shaw of D E Shaw, with a $14.8 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining hedge funds with similar optimism include Matthew Hulsizer’s PEAK6 Capital Management, Joel Greenblatt’s Gotham Asset Management and Brian Taylor’s Pine River Capital Management.

Because Mednax Inc. (NYSE:MD) has witnessed dropping sentiment from the top-tier hedge fund industry, logic holds that there were a few hedgies that decided to sell off their full holdings at the end of the second quarter. Interestingly, Jim Simons’s Renaissance Technologies said goodbye to the biggest investment of all the hedgies we key on, totaling close to $2.5 million in stock, and Donald Chiboucis of Columbus Circle Investors was right behind this move, as the fund cut about $1.6 million worth. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

What do corporate executives and insiders think about Mednax Inc. (NYSE:MD)?

Legal insider trading, particularly when it’s bullish, is particularly usable when the company in focus has seen transactions within the past six months. Over the last half-year time period, Mednax Inc. (NYSE:MD) has seen 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 Mednax Inc. (NYSE:MD). These stocks are Hanger Inc (NYSE:HGR), Acadia Healthcare Company Inc (NASDAQ:ACHC), DaVita HealthCare Partners Inc (NYSE:DVA), Fresenius Medical Care AG & Co. (ADR) (NYSE:FMS), and HEALTHSOUTH Corp. (NYSE:HLS). This group of stocks are the members of the specialized health services industry and their market caps match MD’s market cap.

Using the results demonstrated by our studies, average investors must always pay attention to hedge fund and insider trading sentiment, and Mednax Inc. (NYSE:MD) applies perfectly to this mantra.

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