Is IPC The Hospitalist Company Inc (NASDAQ:IPCM) a worthy investment today? Prominent investors are betting on the stock. The number of bullish hedge fund bets rose by 5 lately.
To the average investor, there are dozens of indicators market participants can use to analyze Mr. Market. A pair of the best are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best money managers can outclass their index-focused peers by a superb margin (see just how much).
Just as beneficial, optimistic insider trading sentiment is a second way to break down the stock market universe. As the old adage goes: there are many reasons for an executive to cut shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the valuable potential of this tactic if you understand where to look (learn more here).
Consequently, it’s important to take a peek at the recent action surrounding IPC The Hospitalist Company Inc (NASDAQ:IPCM).
What have hedge funds been doing with IPC The Hospitalist Company Inc (NASDAQ:IPCM)?
In preparation for this year, a total of 7 of the hedge funds we track were bullish in this stock, a change of 250% from the previous quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings meaningfully.
According to our comprehensive database, Bill Miller’s Legg Mason Capital Management had the most valuable position in IPC The Hospitalist Company Inc (NASDAQ:IPCM), worth close to $8 million, comprising 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is CR Intrinsic Investors, managed by SAC Subsidiary, which held a $6 million position; 0.2% of its 13F portfolio is allocated to the company. Remaining hedge funds that are bullish include Mark Broach’s Manatuck Hill Partners, Chuck Royce’s Royce & Associates and James Dondero’s Highland Capital Management.
With a general bullishness amongst the heavyweights, key hedge funds were leading the bulls’ herd. CR Intrinsic Investors, managed by SAC Subsidiary, assembled the largest position in IPC The Hospitalist Company Inc (NASDAQ:IPCM). CR Intrinsic Investors had 6 million invested in the company at the end of the quarter. Chuck Royce’s Royce & Associates also made a $4 million investment in the stock during the quarter. The other funds with new positions in the stock are James Dondero’s Highland Capital Management, Israel Englander’s Millennium Management, and Steven Cohen’s SAC Capital Advisors.
What have insiders been doing with IPC The Hospitalist Company Inc (NASDAQ:IPCM)?
Insider buying is particularly usable when the primary stock in question has seen transactions within the past six months. Over the latest 180-day time frame, IPC The Hospitalist Company Inc (NASDAQ:IPCM) has seen zero unique insiders buying, and 4 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to IPC The Hospitalist Company Inc (NASDAQ:IPCM). These stocks are The Providence Service Corporation (NASDAQ:PRSC), U.S. Physical Therapy, Inc. (NYSE:USPH), Acadia Healthcare Company Inc (NASDAQ:ACHC), Healthways, Inc. (NASDAQ:HWAY), and Hanger Inc (NYSE:HGR). This group of stocks belong to the specialized health services industry and their market caps are closest to IPCM’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| The Providence Service Corporation (NASDAQ:PRSC) | 5 | 1 | 3 |
| U.S. Physical Therapy, Inc. (NYSE:USPH) | 5 | 1 | 2 |
| Acadia Healthcare Company Inc (NASDAQ:ACHC) | 17 | 1 | 16 |
| Healthways, Inc. (NASDAQ:HWAY) | 8 | 0 | 0 |
| Hanger Inc (NYSE:HGR) | 9 | 0 | 14 |
With the results demonstrated by the aforementioned time-tested strategies, retail investors should always monitor hedge fund and insider trading sentiment, and IPC The Hospitalist Company Inc (NASDAQ:IPCM) applies perfectly to this mantra.
