Is Forrester Research, Inc. (NASDAQ:FORR) a cheap stock to buy now? Investors who are in the know are in an optimistic mood. The number of bullish hedge fund bets moved up by 1 recently.
At the moment, there are many methods market participants can use to track their holdings. A couple of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite fund managers can outclass their index-focused peers by a superb margin (see just how much).
Equally as beneficial, positive insider trading activity is another way to parse down the financial markets. There are a variety of incentives for an executive to cut shares of his or her company, but just one, very simple reason why they would initiate a purchase. Plenty of academic studies have demonstrated the impressive potential of this tactic if investors understand where to look (learn more here).
With all of this in mind, it’s important to take a gander at the recent action regarding Forrester Research, Inc. (NASDAQ:FORR).
How are hedge funds trading Forrester Research, Inc. (NASDAQ:FORR)?
Heading into 2013, a total of 11 of the hedge funds we track were bullish in this stock, a change of 10% from the third quarter. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their holdings meaningfully.
According to our comprehensive database, Claus Moller’s P2 Capital Partners had the most valuable position in Forrester Research, Inc. (NASDAQ:FORR), worth close to $42 million, comprising 8.2% of its total 13F portfolio. The second largest stake is held by Royce & Associates, managed by Chuck Royce, which held a $23 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Jim Simons’s Renaissance Technologies, Israel Englander’s Millennium Management and John Overdeck and David Siegel’s Two Sigma Advisors.
As one would reasonably expect, key money managers have jumped into Forrester Research, Inc. (NASDAQ:FORR) headfirst. Citadel Investment Group, managed by Ken Griffin, created the most outsized position in Forrester Research, Inc. (NASDAQ:FORR). Citadel Investment Group had 0 million invested in the company at the end of the quarter.
How have insiders been trading Forrester Research, Inc. (NASDAQ:FORR)?
Insider trading activity, especially when it’s bullish, is particularly usable when the company in question has seen transactions within the past six months. Over the last six-month time period, Forrester Research, Inc. (NASDAQ:FORR) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Forrester Research, Inc. (NASDAQ:FORR). These stocks are Qiagen NV (NASDAQ:QGEN), National Technical Systems, Inc. (NASDAQ:NTSC), Myriad Genetics, Inc. (NASDAQ:MYGN), Acacia Research Corporation (NASDAQ:ACTG), and National Research Corporation (NASDAQ:NRCI). This group of stocks are the members of the research services industry and their market caps resemble FORR’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Qiagen NV (NASDAQ:QGEN)||7||0||0|
|National Technical Systems, Inc. (NASDAQ:NTSC)||2||0||0|
|Myriad Genetics, Inc. (NASDAQ:MYGN)||21||0||8|
|Acacia Research Corporation (NASDAQ:ACTG)||18||0||6|
|National Research Corporation (NASDAQ:NRCI)||1||0||1|
With the results exhibited by our time-tested strategies, retail investors should always monitor hedge fund and insider trading activity, and Forrester Research, Inc. (NASDAQ:FORR) is an important part of this process.