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
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

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!