16 Rallying Healthcare Stocks Being Sold By Hedge Funds

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Includes: AET, AFFY, BRLI, CELG, CRL, HNT, HUM, ILMN, LNCR, MDCO, PRXL, RMD, SONO, STE, THC, ZOLL
by: Kapitall

Smart money buying trends can be very interesting to follow, especially when they seem to disagree with recent market behavior. If a stock is rallying but institutional managers are selling the name, for instance, it might indicate you should give it a closer look.

We ran a screen on the healthcare sector for stocks rallying above their 20-day, 50-day, and 200-day moving averages for those with the most significant net institutional sales over the current quarter, indicating institutional investors such as hedge fund managers expect these names to underperform.

‪Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six 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 think hedge fund managers are calling it right on these rallying names? Use this list as a starting point for your own analysis.

1. Aetna Inc. (NYSE:AET): Operates as a diversified health care benefits company in the United States. The stock is currently rallying 4.73% above its 20-day moving average, 8.33% above its 50-day MA, and 14.46% above its 200-day MA. Net institutional sales in the current quarter at 15.4M shares, which represents about 4.27% of the company's float of 360.95M shares.

2. Affymax, Inc. (NASDAQ:AFFY): Engages in the development of drugs for the treatment of serious and life-threatening conditions. The stock is currently rallying 12.71% above its 20-day moving average, 34.12% above its 50-day MA, and 70.41% above its 200-day MA. Net institutional sales in the current quarter at 6.0M shares, which represents about 19.76% of the company's float of 30.36M shares.

3. Bio-Reference Laboratories Inc. (NASDAQ:BRLI): Provides clinical laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases primarily in the greater New York metropolitan area. The stock is currently rallying 4.31% above its 20-day moving average, 16.89% above its 50-day MA, and 7.59% above its 200-day MA. Net institutional sales in the current quarter at 3.3M shares, which represents about 13.34% of the company's float of 24.74M shares.

4. Celgene Corporation (NASDAQ:CELG): Develops, and commercializes various therapies to treat cancer and immune-inflammatory related diseases. The stock is currently rallying 1.64% above its 20-day moving average, 6.78% above its 50-day MA, and 18.38% above its 200-day MA. Net institutional sales in the current quarter at 13.2M shares, which represents about 3.03% of the company's float of 435.54M shares.

5. Charles River Laboratories International, Inc. (NYSE:CRL): Provides research models and laboratory animal support expertise to help its global partners advance their research and drug development efforts. The stock is currently rallying 4.00% above its 20-day moving average, 15.83% above its 50-day MA, and 7.17% above its 200-day MA. Net institutional sales in the current quarter at 3.0M shares, which represents about 6.27% of the company's float of 47.84M shares.

6. Health Net Inc. (NYSE:HNT): Provides managed health care services through its health plans and government-sponsored managed care plans. The stock is currently rallying 4.85% above its 20-day moving average, 15.43% above its 50-day MA, and 33.27% above its 200-day MA. Net institutional sales in the current quarter at 2.9M shares, which represents about 3.57% of the company's float of 81.23M shares.

7. Humana Inc. (NYSE:HUM): Offers various health and supplemental benefit plans in the United States. The stock is currently rallying 2.04% above its 20-day moving average, 1.19% above its 50-day MA, and 11.54% above its 200-day MA. Net institutional sales in the current quarter at 6.4M shares, which represents about 3.93% of the company's float of 162.78M shares.

8. Illumina Inc. (NASDAQ:ILMN): Develops, manufactures, and markets integrated systems for the analysis of genetic variation and biological function. The stock is currently rallying 0.97% above its 20-day moving average, 32.83% above its 50-day MA, and 4.88% above its 200-day MA. Net institutional sales in the current quarter at 5.0M shares, which represents about 4.17% of the company's float of 119.93M shares.

9. Lincare Holdings Inc. (NASDAQ:LNCR): Provides oxygen and other respiratory therapy services to home health care market in the United States. The stock is currently rallying 3.67% above its 20-day moving average, 6.86% above its 50-day MA, and 8.80% above its 200-day MA. Net institutional sales in the current quarter at 7.6M shares, which represents about 9.9% of the company's float of 76.74M shares.

10. Medicines Co. (NASDAQ:MDCO): Provides various medicines to hospitals for advancing the treatment of critical care patients primarily in the United States and Europe. The stock is currently rallying 1.70% above its 20-day moving average, 6.50% above its 50-day MA, and 20.82% above its 200-day MA. Net institutional sales in the current quarter at 1.6M shares, which represents about 3.33% of the company's float of 48.10M shares.

11. Parexel International Corp. (NASDAQ:PRXL): Provides clinical research, medical communications, and consulting services, as well as advanced technology products and services to the pharmaceutical, biotechnology, and medical device industries worldwide. The stock is currently rallying 7.42% above its 20-day moving average, 16.54% above its 50-day MA, and 18.31% above its 200-day MA. Net institutional sales in the current quarter at 1.8M shares, which represents about 3.11% of the company's float of 57.79M shares.

12. ResMed Inc. (NYSE:RMD): Engages in the development, manufacture, and distribution of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders. The stock is currently rallying 0.27% above its 20-day moving average, 8.70% above its 50-day MA, and 0.51% above its 200-day MA. Net institutional sales in the current quarter at 16.8M shares, which represents about 11.9% of the company's float of 141.21M shares.

13. SonoSite Inc. (NASDAQ:SONO): Develops, manufactures, and distributes hand-carried ultrasound systems for use across medical specialties and in a range of treatment settings. The stock is currently rallying 0.07% above its 20-day moving average, 2.73% above its 50-day MA, and 40.82% above its 200-day MA. Net institutional sales in the current quarter at 1.3M shares, which represents about 9.62% of the company's float of 13.51M shares.

14. Steris Corp. (NYSE:STE): Develops, manufactures, and markets infection prevention, contamination control, microbial reduction, and surgical support products and services to healthcare, pharmaceutical, scientific, research, industrial, and governmental customers worldwide. The stock is currently rallying 3.62% above its 20-day moving average, 6.71% above its 50-day MA, and 1.69% above its 200-day MA. Net institutional sales in the current quarter at 1.9M shares, which represents about 3.32% of the company's float of 57.24M shares.

15. Tenet Healthcare Corp. (NYSE:THC): Operates acute care hospitals and related health care facilities. The stock is currently rallying 0.24% above its 20-day moving average, 9.16% above its 50-day MA, and 6.20% above its 200-day MA. Net institutional sales in the current quarter at 47.8M shares, which represents about 11.09% of the company's float of 430.96M shares.

16. ZOLL Medical Corp. (NASDAQ:ZOLL): Develops, manufactures, and markets resuscitation devices and related software solutions worldwide. The stock is currently rallying 5.76% above its 20-day moving average, 14.34% above its 50-day MA, and 42.60% above its 200-day MA. Net institutional sales in the current quarter at 1.5M shares, which represents about 6.81% of the company's float of 22.02M shares.

*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.