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Analysts follow the buying and selling trends of institutional investors such as hedge fund managers and mutual fund managers (a.k.a the smart money) because they have access to sophisticated research and have a lot of experience in choosing investments.

We ran a screen on stocks from the healthcare sector for those that are being highly shorted, with short floats above 10%. We screened these stocks for those seeing significant institutional selling over the current quarter.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬


We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.



Do you agree with the smart money on these names? Use this list as a starting-off point for your own analysis.

List sorted by net institutional shares sold as a percent of share float.

1. Cephalon Inc. (NASDAQ:CEPH): Engages in the discovery, development, and commercialization of products for central nervous system, inflammatory disease, pain, and oncology therapeutic areas. Market cap of $6.31B. Short float at 12.80%. Net institutional shares sold over the current quarter at 13.2M, which is 18.67% of the company's 70.71M share float. The stock has gained 26.79% over the last year.

2. USANA Health Sciences Inc. (NYSE:USNA):
Develops, manufactures, distributes, and sells nutritional and personal care products worldwide. Market cap of $407.77M. Short float at 31.22%. Net institutional shares sold over the current quarter at 334.9K, which is 4.86% of the company's 6.89M share float. It's been a rough couple of days for the stock, losing 6.94% over the last week.

3. Nektar Therapeutics (NASDAQ:NKTR):
Engages in developing a pipeline of drug candidates that utilize its PEGylation and polymer conjugate technology platforms. Market cap of $585.83M. Short float at 12.20%. Net institutional shares sold over the current quarter at 4.2M, which is 4.42% of the company's 95.05M share float. The stock has lost 65.55% over the last year.

4. Acorda Therapeutics, Inc. (NASDAQ:ACOR):
A commercial stage biopharmaceutical company, involves in the identification, development, and commercialization of therapies for multiple sclerosis (NYSE:MS), spinal cord injury, and other nervous system disorders. Market cap of $847.53M. Short float at 11.91%. Net institutional shares sold over the current quarter at 1.1M, which is 3.47% of the company's 31.74M share float. It's been a rough couple of days for the stock, losing 8.87% over the last week.

5. MannKind Corp. (NASDAQ:MNKD): Focuses on the discovery, development, and commercialization of therapeutic products for diabetes and cancer. Market cap of $489.83M. Short float at 30.96%. Net institutional shares sold over the current quarter at 2.4M, which is 3.03% of the company's 79.31M share float. The stock has recently rebounded, and is currently trading 21.59% above its SMA20 and 23.66% above its SMA50. However, the stock still trades 15.22% below its SMA200. The stock has had a couple of great days, gaining 9.68% over the last week.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 5 Highly Shorted Healthcare Stocks Being Sold By Smart Money