Is Regeneron Pharmaceuticals Inc (NASDAQ:REGN) a good investment?
If you were to ask many investors, hedge funds are viewed as delayed, outdated investment vehicles of an era lost to time. Although there are over 8,000 hedge funds trading in present day, Insider Monkey aim at the crème de la crème of this club, close to 525 funds. Analysts calculate that this group has its hands on most of the smart money’s total assets, and by watching their best stock picks, we’ve determined a few investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Equally as useful, positive insider trading activity is a second way to look at the financial markets. Obviously, there are many motivations for an executive to cut shares of his or her company, but just one, very clear reason why they would buy. Various empirical studies have demonstrated the valuable potential of this tactic if shareholders understand what to do (learn more here).
What’s more, it’s important to discuss the recent info for Regeneron Pharmaceuticals Inc (NASDAQ:REGN).
What have hedge funds been doing with Regeneron Pharmaceuticals Inc (NASDAQ:REGN)?
At the end of the second quarter, a total of 33 of the hedge funds we track were long in this stock, a change of 50% from the previous quarter. With hedgies’ sentiment swirling, there exists a few key hedge fund managers who were increasing their holdings substantially.
When using filings from the hedgies we track, Donald Chiboucis’s Columbus Circle Investors had the largest position in Regeneron Pharmaceuticals Inc (NASDAQ:REGN), worth close to $96.1 million, comprising 0.8% of its total 13F portfolio. The second largest stake is held by Samuel Isaly of OrbiMed Advisors, with a $79 million position; 1.7% of its 13F portfolio is allocated to the company. Some other hedge funds that are bullish include D. E. Shaw’s D E Shaw, Phill Gross and Robert Atchinson’s Adage Capital Management and Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management.
Consequently, certain money managers were leading the bulls’ herd. Columbus Circle Investors, managed by Donald Chiboucis, initiated the largest position in Regeneron Pharmaceuticals Inc (NASDAQ:REGN). Columbus Circle Investors had 96.1 million invested in the company at the end of the quarter. Samuel Isaly’s OrbiMed Advisors also made a $79 million investment in the stock during the quarter. The following funds were also among the new REGN investors: D. E. Shaw’s D E Shaw, Phill Gross and Robert Atchinson’s Adage Capital Management, and Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management.
What have insiders been doing with Regeneron Pharmaceuticals Inc (NASDAQ:REGN)?
Legal insider trading, particularly when it’s bullish, is particularly usable when the primary stock in question has seen transactions within the past half-year. Over the latest 180-day time frame, Regeneron Pharmaceuticals Inc (NASDAQ:REGN) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Regeneron Pharmaceuticals Inc (NASDAQ:REGN). These stocks are Biogen Idec Inc. (NASDAQ:BIIB), Illumina, Inc. (NASDAQ:ILMN), BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), and Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN). This group of stocks are the members of the biotechnology industry and their market caps are closest to REGN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Biogen Idec Inc. (NASDAQ:BIIB) | 49 | 0 | 0 |
| Illumina, Inc. (NASDAQ:ILMN) | 29 | 0 | 0 |
| BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) | 27 | 0 | 0 |
| Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) | 24 | 0 | 0 |
| Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) | 31 | 0 | 0 |
Using the results demonstrated by the previously mentioned strategies, average investors should always keep one eye on hedge fund and insider trading activity, and Regeneron Pharmaceuticals Inc (NASDAQ:REGN) applies perfectly to this mantra.
