Is World Wrestling Entertainment, Inc. (NYSE:WWE) a splendid stock to buy now? The smart money is getting less optimistic. The number of long hedge fund positions stayed the same which is a slightly negative development in our experience
In the financial world, there are tons of metrics shareholders can use to track the equity markets. Two of the best are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite hedge fund managers can outperform the S&P 500 by a solid amount (see just how much).
Just as key, optimistic insider trading sentiment is another way to break down the stock market universe. Obviously, there are plenty of incentives for an executive to sell shares of his or her company, but just one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the useful potential of this tactic if you understand where to look (learn more here).
Consequently, let’s take a peek at the key action regarding World Wrestling Entertainment, Inc. (NYSE:WWE).
How have hedgies been trading World Wrestling Entertainment, Inc. (NYSE:WWE)?
At Q1’s end, a total of 12 of the hedge funds we track were long in this stock, a change of 0% from the previous quarter.
Since World Wrestling Entertainment, Inc. (NYSE:WWE) has experienced a declination in interest from the entirety of the hedge funds we track, we can see that there were a few hedge funds that slashed their entire stakes at the end of the first quarter. At the top of the heap, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors dumped the largest investment of all the hedgies we watch, totaling close to $1.3 million in stock.. Paul Tudor Jones’s fund, Tudor Investment Corp, also said goodbye to its stock, about $0.4 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
How have insiders been trading World Wrestling Entertainment, Inc. (NYSE:WWE)?
Insider buying is particularly usable when the primary stock in question has experienced transactions within the past six months. Over the latest 180-day time period, World Wrestling Entertainment, Inc. (NYSE:WWE) has experienced zero 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 World Wrestling Entertainment, Inc. (NYSE:WWE). These stocks are Starz (NASDAQ:STRZA), Live Nation Entertainment, Inc. (NYSE:LYV), IMAX Corporation (USA) (NYSE:IMAX), Promotora de Informaciones S.A. (NYSE:PRIS), and Bona Film Group Ltd (ADR) (NASDAQ:BONA). All of these stocks are in the entertainment – diversified industry and their market caps are similar to WWE’s market cap.