Opko Health Inc. (OPK), Hansen Medical, Inc. (HNSN), Pacific Biosciences of California (PACB): Two Stocks to Buy, 1 to Hold

The company value has increased by almost 80% in the last six months. It is still trading below its mean sell side target price of $2.63 and has a predominantly ‘buy’ rating from the sell side. Insiders have purchased almost $1.4 million shares of the company, increasing total insider holding by almost 8%. During the same period institutional investors have sold approximately $5.8 million shares of the company, reducing holdings by 28%.

There are mixed signals about Pacific Bioscience and heavy selling by the institutions indicates that the stock can plummet due to profit taking. Investors should ‘hold’ and wait for a price decline before investing.

Conclusion

Investors can go for Hansen Medical, Inc. (NASDAQ:HNSN) and Opko Health Inc. (NYSE:OPK) but are better off holding Pacific Biosciences of California (NASDAQ:PACB). The confidence of the CEO in Opko health is a highly bullish signal for the investment and makes it a long term buy. The 30% price decline in Hansen along with heavy insider buying is an indicator that investors should go for this undervalued company.

The 80% rally in Pacific Bioscience has overvalued the security and heavy institutional selling will likely result in depreciation of value. The company is still a long term buy but waiting for a price decline will substantially increase margins for long term investors.

The article 2 Stocks to Buy, 1 to Hold originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.