Is CBS Corporation (NYSE:CBS) a buy here? Money managers are in an optimistic mood. The number of long hedge fund positions went up by 2 in recent months.
To the average investor, there are plenty of indicators shareholders can use to analyze the equity markets. Two of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best money managers can outperform the market by a solid amount (see just how much).
Just as beneficial, optimistic insider trading activity is another way to parse down the marketplace. Obviously, there are a number of stimuli for a corporate insider to downsize shares of his or her company, but only one, very simple reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the impressive potential of this tactic if “monkeys” understand where to look (learn more here).
With these “truths” under our belt, we’re going to take a peek at the recent action encompassing CBS Corporation (NYSE:CBS).
What does the smart money think about CBS Corporation (NYSE:CBS)?
In preparation for this year, a total of 45 of the hedge funds we track held long positions in this stock, a change of 5% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their holdings significantly.
According to our comprehensive database, David Einhorn’s Greenlight Capital had the biggest position in CBS Corporation (NYSE:CBS), worth close to $204.7 million, accounting for 3.2% of its total 13F portfolio. On Greenlight Capital’s heels is Jonathon Jacobson of Highfields Capital Management, with a $156.2 million position; the fund has 1.7% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions include Philippe Laffont’s Coatue Management, Steven Cohen’s SAC Capital Advisors and Mario Gabelli’s GAMCO Investors.
As one would reasonably expect, key hedge funds were leading the bulls’ herd. Highfields Capital Management, managed by Jonathon Jacobson, created the biggest position in CBS Corporation (NYSE:CBS). Highfields Capital Management had 156.2 million invested in the company at the end of the quarter. Philippe Laffont’s Coatue Management also initiated a $118.6 million position during the quarter. The following funds were also among the new CBS investors: Jorge Paulo Lemann’s 3G Capital, Keith Meister’s Corvex Capital, and Keith Meister’s Corvex Capital.
What do corporate executives and insiders think about CBS Corporation (NYSE:CBS)?
Insider trading activity, especially when it’s bullish, is particularly usable when the company we’re looking at has experienced transactions within the past half-year. Over the latest 180-day time frame, CBS Corporation (NYSE:CBS) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to CBS Corporation (NYSE:CBS). These stocks are CTC Media, Inc. (NASDAQ:CTCM), Scripps Networks Interactive, Inc. (NYSE:SNI), Liberty Media Corp (NASDAQ:LMCA), and Grupo Televisa SAB (ADR) (NYSE:TV). This group of stocks are in the broadcasting – tv industry and their market caps match CBS’s market cap.