7 Rallying Healthcare Stocks Being Sold Off By Hedge Funds

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 |  Includes: AFFY, AMGN, BSX, IART, NUTR, RMD, SEM
by: Kapitall

Do you follow the buying and selling trends of smart money investors? For a closer look at stocks currently out of favor with smart money institutional investors, we ran a screen.

We began by screening the healthcare sector for stocks with positive market sentiment, rallying above their 20-day, 50-day, and 200-day moving averages.

We then screened for those with bearish sentiment from institutional investors, with significant net institutional sales over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to underperform.

Interactive Chart: Press Play to compare changes in market cap over the last two years for six of 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 think hedge funds are calling it right on these names? Use this list as a starting point for your own analysis.

List sorted by net institutional sales over the last quarter as a percent of share float.

1. Integra LifeSciences Holdings Corporation (NASDAQ:IART): Develops, manufactures, and markets surgical implants and medical instruments for neurosurgery, extremity reconstruction, orthopedics, and general surgery. Market cap at $961.1M, most recent closing price at $35.33. The stock is currently rallying 2.72% above its 20-day moving average, 3.38% above its 50-day MA, and 4.68% above its 200-day MA. Net institutional sales in the current quarter at -2.5M shares, which represents about 13.99% of the company's float of 17.87M shares.

2. Affymax, Inc. (NASDAQ:AFFY): Engages in the development of drugs for the treatment of serious and life-threatening conditions. Market cap at $482.09M, most recent closing price at $13.53. The stock is currently rallying 12.56% above its 20-day moving average, 17.20% above its 50-day MA, and 85.03% above its 200-day MA. Net institutional sales in the current quarter at -2.1M shares, which represents about 7.2% of the company's float of 29.16M shares.

3. Boston Scientific Corporation (NYSE:BSX): Develops, manufactures, and markets medical devices used in various interventional medical specialties worldwide. Market cap at $8.89B, most recent closing price at $6.18. The stock is currently rallying 5.61% above its 20-day moving average, 6.22% above its 50-day MA, and 7.55% above its 200-day MA. Net institutional sales in the current quarter at -95.9M shares, which represents about 6.8% of the company's float of 1.41B shares.

4. Amgen Inc. (NASDAQ:AMGN): Develops, manufactures, and markets human therapeutics based on advances in cellular and molecular biology for grievous illnesses primarily in the United States, Europe, and Canada. Market cap at $55.22B, most recent closing price at $70.55. The stock is currently rallying 1.36% above its 20-day moving average, 2.73% above its 50-day MA, and 14.54% above its 200-day MA. Net institutional sales in the current quarter at -52.5M shares, which represents about 6.73% of the company's float of 779.77M shares.

5. Select Medical Holdings Corporation (NYSE:SEM): Operates specialty hospitals and outpatient rehabilitation clinics in the United States. Market cap at $1.28B, most recent closing price at $9.0. The stock is currently rallying 10.39% above its 20-day moving average, 11.84% above its 50-day MA, and 15.24% above its 200-day MA. Net institutional sales in the current quarter at -2.1M shares, which represents about 6.23% of the company's float of 33.72M shares.

6. 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. Market cap at $4.77B, most recent closing price at $33.17. The stock is currently rallying 5.77% above its 20-day moving average, 8.77% above its 50-day MA, and 18.16% above its 200-day MA. Net institutional sales in the current quarter at -7.7M shares, which represents about 5.51% of the company's float of 139.80M shares.

7. Nutraceutical International Corp. (NASDAQ:NUTR): Engages in the manufacture, marketing, distribution, and retail of branded nutritional supplements and other natural products in the United States and internationally. Market cap at $148.54M, most recent closing price at $14.85. The stock is currently rallying 1.59% above its 20-day moving average, 7.15% above its 50-day MA, and 13.68% above its 200-day MA. Net institutional sales in the current quarter at -435.0K shares, which represents about 5.1% of the company's float of 8.53M 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.