Should You Avoid Bio-Reference Laboratories Inc (BRLI)?

Is Bio-Reference Laboratories Inc (NASDAQ:BRLI) a buy?

At the moment, there are dozens of gauges market participants can use to analyze the equity markets. A duo of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite money managers can trounce their index-focused peers by a healthy amount (see just how much).

Equally as crucial, bullish insider trading activity is a second way to analyze the investments you’re interested in. Just as you’d expect, there are many reasons for a corporate insider to sell shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Several empirical studies have demonstrated the useful potential of this method if piggybackers know where to look (learn more here).

What’s more, let’s examine the recent info about Bio-Reference Laboratories Inc (NASDAQ:BRLI).

How have hedgies been trading Bio-Reference Laboratories Inc (NASDAQ:BRLI)?

At Q2’s end, a total of 10 of the hedge funds we track were bullish in this stock, a change of -9% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes significantly.

Out of the hedge funds we follow, Chase Coleman and Feroz Dewan’s Tiger Global Management LLC had the largest position in Bio-Reference Laboratories Inc (NASDAQ:BRLI), worth close to $20.7 million, accounting for 0.4% of its total 13F portfolio. Sitting at the No. 2 spot is Royce & Associates, managed by Chuck Royce, which held a $5.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedge funds that hold long positions include Matthew Hulsizer’s PEAK6 Capital Management, Joel Greenblatt’s Gotham Asset Management and Mario Gabelli’s GAMCO Investors.

Judging by the fact that Bio-Reference Laboratories Inc (NASDAQ:BRLI) has witnessed bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there is a sect of hedgies that elected to cut their full holdings in Q1. It’s worth mentioning that Jim Simons’s Renaissance Technologies dropped the largest stake of all the hedgies we track, totaling about $2.8 million in stock, and Matthew Tewksbury of Stevens Capital Management was right behind this move, as the fund cut about $0.7 million worth. These moves are important to note, as total hedge fund interest fell by 1 funds in Q1.

How are insiders trading Bio-Reference Laboratories Inc (NASDAQ:BRLI)?

Bullish insider trading is best served when the company we’re looking at has seen transactions within the past 180 days. Over the latest 180-day time period, Bio-Reference Laboratories Inc (NASDAQ:BRLI) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll check out the relationship between both of these indicators in other stocks similar to Bio-Reference Laboratories Inc (NASDAQ:BRLI). These stocks are Trius Therapeutics, Inc. (NASDAQ:TSRX), Novadaq Technologies Inc. (NASDAQ:NVDQ), Nordion Inc (USA) (NYSE:NDZ), WuXi PharmaTech (Cayman) Inc. (ADR) (NYSE:WX), and Genomic Health, Inc. (NASDAQ:GHDX). This group of stocks belong to the medical laboratories & research industry and their market caps are similar to BRLI’s market cap.