Bottomline Technologies (EPAY): Hedge Funds Are Bearish and Insiders Are Undecided, What Should You Do?

Page 1 of 2

What’s a smart Bottomline Technologies (NASDAQ:EPAY) investor to do?

If you were to ask many investors, hedge funds are assumed to be delayed, outdated financial tools of an era lost to time. Although there are over 8,000 hedge funds with their doors open currently, Insider Monkey focuses on the bigwigs of this club, close to 525 funds. It is assumed that this group controls the majority of all hedge funds’ total assets, and by watching their best stock picks, we’ve discovered a number of investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).

Equally as useful, bullish insider trading activity is a second way to look at the stock market universe. There are many stimuli for an insider to get rid of shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several empirical studies have demonstrated the valuable potential of this method if shareholders understand where to look (learn more here).

What’s more, let’s examine the latest info about Bottomline Technologies (NASDAQ:EPAY).

Hedge fund activity in Bottomline Technologies (NASDAQ:EPAY)

In preparation for the third quarter, a total of 6 of the hedge funds we track held long positions in this stock, a change of -14% from the first quarter. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their holdings considerably.

Bottomline Technologies (NASDAQ:EPAY)Out of the hedge funds we follow, Millennium Management, managed by Israel Englander, holds the biggest position in Bottomline Technologies (NASDAQ:EPAY). Millennium Management has a $1.3 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is Chuck Royce of Royce & Associates, with a $1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other peers that are bullish include Matthew Hulsizer’s PEAK6 Capital Management, Matthew Tewksbury’s Stevens Capital Management and Mike Vranos’s Ellington.

Since Bottomline Technologies (NASDAQ:EPAY) has experienced a fall in interest from the top-tier hedge fund industry, it’s safe to say that there lies a certain “tier” of fund managers that slashed their entire stakes heading into Q2. At the top of the heap, John Murphy’s Alydar Capital sold off the biggest position of all the hedgies we track, valued at close to $7.1 million in stock. D. E. Shaw’s fund, D E Shaw, also dumped its stock, about $1.8 million worth. These transactions are intriguing to say the least, as total hedge fund interest was cut by 1 funds heading into Q2.

How are insiders trading Bottomline Technologies (NASDAQ:EPAY)?

Legal insider trading, particularly when it’s bullish, is particularly usable when the company we’re looking at has experienced transactions within the past half-year. Over the last 180-day time frame, Bottomline Technologies (NASDAQ:EPAY) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll also examine the relationship between both of these indicators in other stocks similar to Bottomline Technologies (NASDAQ:EPAY). These stocks are Blackbaud, Inc. (NASDAQ:BLKB), Interactive Intelligence Group Inc (NASDAQ:ININ), MicroStrategy Incorporated (NASDAQ:MSTR), NetScout Systems, Inc. (NASDAQ:NTCT), and Pegasystems Inc. (NASDAQ:PEGA). This group of stocks belong to the business software & services industry and their market caps are similar to EPAY’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!