Should You Buy Volcano Corporation (VOLC)?

Is Volcano Corporation (NASDAQ:VOLC) a splendid investment right now? Prominent investors are buying. The number of long hedge fund positions went up by 3 lately.

To the average investor, there are many indicators investors can use to monitor publicly traded companies. Two of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top money managers can outclass the S&P 500 by a healthy margin (see just how much).

Just as important, optimistic insider trading sentiment is another way to parse down the investments you’re interested in. As the old adage goes: there are many incentives for an insider to sell shares of his or her company, but only one, very clear reason why they would behave bullishly. Several empirical studies have demonstrated the market-beating potential of this method if you understand what to do (learn more here).

Consequently, it’s important to take a glance at the key action surrounding Volcano Corporation (NASDAQ:VOLC).

How are hedge funds trading Volcano Corporation (NASDAQ:VOLC)?

At the end of the first quarter, a total of 18 of the hedge funds we track were long in this stock, a change of 20% from the first quarter.

With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Healthcor Management LP, managed by Arthur B Cohen and Joseph Healey, assembled the biggest position in Volcano Corporation (NASDAQ:VOLC). Healthcor Management LP had 25.6 million invested in the company at the end of the quarter. Stephen DuBois’s Camber Capital Management also initiated a $11.1 million position during the quarter. The other funds with new positions in the stock are Israel Englander’s Catapult Capital Management, Israel Englander’s Millennium Management, and Dmitry Balyasny’s Balyasny Asset Management.

How have insiders been trading Volcano Corporation (NASDAQ:VOLC)?

Insider buying is at its handiest when the company we’re looking at has experienced transactions within the past half-year. Over the last 180-day time frame, Volcano Corporation (NASDAQ:VOLC) has experienced 1 unique insiders buying, and 7 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Volcano Corporation (NASDAQ:VOLC). These stocks are CONMED Corporation (NASDAQ:CNMD), ArthroCare Corporation (NASDAQ:ARTC), Globus Medical Inc (NYSE:GMED), Cyberonics, Inc. (NASDAQ:CYBX), and Masimo Corporation (NASDAQ:MASI). This group of stocks are the members of the medical appliances & equipment industry and their market caps are closest to VOLC’s market cap.

With the returns exhibited by our time-tested strategies, retail investors should always monitor hedge fund and insider trading sentiment, and Volcano Corporation (NASDAQ:VOLC) is no exception.

Click here to learn why you should track hedge funds