Is CA, Inc. (NASDAQ:CA) a buy?
To many market players, hedge funds are perceived as bloated, outdated investment tools of a forgotten age. Although there are In excess of 8,000 hedge funds trading currently, Insider Monkey focuses on the crème de la crème of this group, about 525 funds. It is assumed that this group oversees most of all hedge funds’ total capital, and by keeping an eye on their best stock picks, we’ve figured out a few investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Equally as necessary, positive insider trading sentiment is another way to look at the world of equities. Just as you’d expect, there are lots of reasons for an executive to drop shares of his or her company, but just one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the valuable potential of this tactic if piggybackers understand what to do (learn more here).
Furthermore, it’s important to study the newest info about CA, Inc. (NASDAQ:CA).
How are hedge funds trading CA, Inc. (NASDAQ:CA)?
In preparation for the third quarter, a total of 28 of the hedge funds we track were bullish in this stock, a change of 12% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes considerably.
When using filings from the hedgies we track, Cliff Asness’s AQR Capital Management had the biggest position in CA, Inc. (NASDAQ:CA), worth close to $78.2 million, comprising 0.3% of its total 13F portfolio. The second largest stake is held by Private Capital Management, managed by Gregg J. Powers, which held a $54.3 million position; the fund has 5.1% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include George Soros’s Soros Fund Management, Clint Carlson’s Carlson Capital and Matthew Hulsizer’s PEAK6 Capital Management.
As one would understandably expect, certain bigger names were leading the bulls’ herd. AQR Capital Management, managed by Cliff Asness, initiated the largest position in CA, Inc. (NASDAQ:CA). AQR Capital Management had 78.2 million invested in the company at the end of the quarter. Gregg J. Powers’s Private Capital Management also made a $54.3 million investment in the stock during the quarter. The other funds with brand new CA positions are George Soros’s Soros Fund Management, Clint Carlson’s Carlson Capital, and Matthew Hulsizer’s PEAK6 Capital Management.
What do corporate executives and insiders think about CA, Inc. (NASDAQ:CA)?
Insider buying is best served when the company in question has experienced transactions within the past six months. Over the latest six-month time period, CA, Inc. (NASDAQ:CA) has experienced zero unique insiders buying, and 4 insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to CA, Inc. (NASDAQ:CA). These stocks are Intuit Inc. (NASDAQ:INTU), F5 Networks, Inc. (NASDAQ:FFIV), Red Hat, Inc. (NYSE:RHT), Workday Inc (NYSE:WDAY), and Catamaran Corp (USA) (NASDAQ:CTRX). This group of stocks belong to the application software industry and their market caps match CA’s market cap.