This Metric Says You Are Smart to Buy Palatin Technologies, Inc. (PTN)

Is Palatin Technologies, Inc. (NYSEAMEX:PTN) undervalued? Investors who are in the know are becoming hopeful. The number of long hedge fund bets rose by 1 lately.

In the 21st century investor’s toolkit, there are a multitude of metrics investors can use to analyze stocks. A couple of the best are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite hedge fund managers can outclass the broader indices by a very impressive margin (see just how much).

Just as important, bullish insider trading activity is a second way to parse down the investments you’re interested in. As the old adage goes: there are lots of incentives for a corporate insider to get rid of shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the valuable potential of this tactic if you know what to do (learn more here).

With all of this in mind, we’re going to take a glance at the recent action regarding Palatin Technologies, Inc. (NYSEAMEX:PTN).

What have hedge funds been doing with Palatin Technologies, Inc. (NYSEAMEX:PTN)?

At year’s end, a total of 5 of the hedge funds we track held long positions in this stock, a change of 25% from the third quarter. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their stakes considerably.

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Now, specific money managers were breaking ground themselves. DAFNA Capital Management, managed by Nathan Fischel, created the biggest position in Palatin Technologies, Inc. (NYSEAMEX:PTN). DAFNA Capital Management had 0.1 million invested in the company at the end of the quarter.

How have insiders been trading Palatin Technologies, Inc. (NYSEAMEX:PTN)?

Insider purchases made by high-level executives is particularly usable when the company in focus has experienced transactions within the past 180 days. Over the last 180-day time frame, Palatin Technologies, Inc. (NYSEAMEX:PTN) has experienced 8 unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Palatin Technologies, Inc. (NYSEAMEX:PTN). These stocks are Rosetta Genomics Ltd. (USA) (NASDAQ:ROSG), Vermillion, Inc. (NASDAQ:VRML), and Venaxis Inc (NASDAQ:APPY). This group of stocks are the members of the diagnostic substances industry and their market caps are similar to PTN’s market cap.