Should a Natus Medical Inc (NASDAQ:BABY) track the following data?
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Just as crucial, bullish insider trading activity is a second way to analyze the investments you’re interested in. As the old adage goes: there are lots of reasons for an upper level exec to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the useful potential of this method if shareholders understand what to do (learn more here).
Thus, we’re going to analyze the latest info surrounding Natus Medical Inc (NASDAQ:BABY).
What does the smart money think about Natus Medical Inc (NASDAQ:BABY)?
Heading into Q3, a total of 15 of the hedge funds we track were bullish in this stock, a change of -6% from the previous quarter. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were boosting their holdings significantly.
According to our 13F database, Broadfin Capital, managed by Kevin Kotler, holds the biggest position in Natus Medical Inc (NASDAQ:BABY). Broadfin Capital has a $35.4 million position in the stock, comprising 6.9% of its 13F portfolio. On Broadfin Capital’s heels is Samuel Isaly of OrbiMed Advisors, with a $19.5 million position; 0.4% of its 13F portfolio is allocated to the stock. Some other hedgies with similar optimism include Jay Petschek and Steven Major’s Corsair Capital Management, J. Carlo Cannell’s Cannell Capital and Stephen DuBois’s Camber Capital Management.
Due to the fact Natus Medical Inc (NASDAQ:BABY) has faced a fall in interest from the entirety of the hedge funds we track, we can see that there is a sect of hedgies who sold off their entire stakes in Q1. At the top of the heap, SAC Subsidiary’s CR Intrinsic Investors dropped the biggest stake of all the hedgies we track, totaling close to $2.5 million in stock. D. E. Shaw’s fund, D E Shaw, also cut its stock, about $0.2 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 1 funds in Q1.
How are insiders trading Natus Medical Inc (NASDAQ:BABY)?
Bullish insider trading is particularly usable when the company in focus has experienced transactions within the past half-year. Over the latest six-month time frame, Natus Medical Inc (NASDAQ:BABY) 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 Natus Medical Inc (NASDAQ:BABY). These stocks are Syneron Medical Ltd. (NASDAQ:ELOS), Invacare Corporation (NYSE:IVC), Symmetry Medical Inc. (NYSE:SMA), Cynosure, Inc. (NASDAQ:CYNO), and GenMark Diagnostics, Inc (NASDAQ:GNMK). This group of stocks are in the medical appliances & equipment industry and their market caps are similar to BABY’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Syneron Medical Ltd. (NASDAQ:ELOS) | 12 | 0 | 0 |
| Invacare Corporation (NYSE:IVC) | 12 | 0 | 0 |
| Symmetry Medical Inc. (NYSE:SMA) | 14 | 0 | 0 |
| Cynosure, Inc. (NASDAQ:CYNO) | 19 | 0 | 0 |
| GenMark Diagnostics, Inc (NASDAQ:GNMK) | 8 | 0 | 0 |
Using the returns shown by our analyses, regular investors should always track hedge fund and insider trading sentiment, and Natus Medical Inc (NASDAQ:BABY) is no exception.
