Digital River, Inc. (DRIV): Hedge Funds Are Bearish and Insiders Are Bullish, What Should You Do?

Page 1 of 2

Digital River, Inc. (NASDAQ:DRIV)Digital River, Inc. (NASDAQ:DRIV) was in 12 hedge funds’ portfolio at the end of the first quarter of 2013. DRIV shareholders have witnessed a decrease in hedge fund sentiment lately. There were 14 hedge funds in our database with DRIV holdings at the end of the previous quarter.

In today’s marketplace, there are dozens of indicators investors can use to analyze publicly traded companies. A duo of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best hedge fund managers can outperform the broader indices by a significant margin (see just how much).

Just as beneficial, positive insider trading sentiment is a second way to break down the marketplace. Just as you’d expect, there are many incentives for a corporate insider to cut shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this tactic if “monkeys” understand what to do (learn more here).

With all of this in mind, we’re going to take a peek at the key action regarding Digital River, Inc. (NASDAQ:DRIV).

What have hedge funds been doing with Digital River, Inc. (NASDAQ:DRIV)?

In preparation for this quarter, a total of 12 of the hedge funds we track were bullish in this stock, a change of -14% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their holdings meaningfully.

According to our comprehensive database, Renaissance Technologies, managed by Jim Simons, holds the largest position in Digital River, Inc. (NASDAQ:DRIV). Renaissance Technologies has a $9.2 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is AQR Capital Management, managed by Cliff Asness, which held a $4.6 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining peers that hold long positions include Steven Cohen’s SAC Capital Advisors, John Overdeck and David Siegel’s Two Sigma Advisors and Ken Griffin’s Citadel Investment Group.

Seeing as Digital River, Inc. (NASDAQ:DRIV) has witnessed falling interest from the aggregate hedge fund industry, we can see that there was a specific group of hedge funds who were dropping their positions entirely in Q1. Interestingly, Joel Greenblatt’s Gotham Asset Management cut the largest investment of all the hedgies we monitor, worth close to $2.1 million in stock.. Paul Tudor Jones’s fund, Tudor Investment Corp, also said goodbye to its stock, about $0.3 million worth. These transactions are important to note, as aggregate hedge fund interest fell by 2 funds in Q1.

How are insiders trading Digital River, Inc. (NASDAQ:DRIV)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company we’re looking at has experienced transactions within the past six months. Over the latest six-month time frame, Digital River, Inc. (NASDAQ:DRIV) has experienced 4 unique insiders buying, and 2 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Digital River, Inc. (NASDAQ:DRIV). These stocks are ClickSoftware Technologies Ltd. (NASDAQ:CKSW), QuinStreet Inc (NASDAQ:QNST), Vocus, Inc. (NASDAQ:VOCS), Demand Media Inc (NYSE:DMD), and InterNAP Network Services (NASDAQ:INAP). All of these stocks are in the internet software & services industry and their market caps resemble DRIV’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

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!