Is Tech Data Corp (NASDAQ:TECD) a buy here? Prominent investors are taking an optimistic view. The number of long hedge fund positions improved by 1 in recent months.
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Just as integral, optimistic insider trading sentiment is another way to parse down the investments you’re interested in. There are many reasons for an upper level exec to sell shares of his or her company, but just one, very clear reason why they would buy. Several empirical studies have demonstrated the useful potential of this tactic if investors understand where to look (learn more here).
Now, let’s take a gander at the recent action surrounding Tech Data Corp (NASDAQ:TECD).
What have hedge funds been doing with Tech Data Corp (NASDAQ:TECD)?
At the end of the first quarter, a total of 12 of the hedge funds we track were bullish in this stock, a change of 9% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their holdings meaningfully.
Of the funds we track, Ken Fisher’s Fisher Asset Management had the largest position in Tech Data Corp (NASDAQ:TECD), worth close to $51 million, comprising 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is Firefly Value Partners, managed by Ryan Heslop and Ariel Warszawski, which held a $46.5 million position; the fund has 5.8% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include Cliff Asness’s AQR Capital Management, Chuck Royce’s Royce & Associates and Ken Griffin’s Citadel Investment Group.
As aggregate interest increased, specific money managers were breaking ground themselves. Whitebox Advisors, managed by Andy Redleaf, initiated the largest position in Tech Data Corp (NASDAQ:TECD). Whitebox Advisors had 1.5 million invested in the company at the end of the quarter. Matthew Tewksbury’s Stevens Capital Management also initiated a $0.5 million position during the quarter. The only other fund with a brand new TECD position is Steven Cohen’s SAC Capital Advisors.
Insider trading activity in Tech Data Corp (NASDAQ:TECD)
Insider purchases made by high-level executives is particularly usable when the company in question has seen transactions within the past six months. Over the last six-month time frame, Tech Data Corp (NASDAQ:TECD) has experienced zero unique insiders buying, and 3 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 Tech Data Corp (NASDAQ:TECD). These stocks are Peerless Systems Corp. (NASDAQ:PRLS), SED International Holdings, Inc. (NYSEAMEX:SED), Wayside Technology Group, Inc. (NASDAQ:WSTG), Navarre Corporation (NASDAQ:NAVR), and Ingram Micro Inc. (NYSE:IM). This group of stocks are in the computers wholesale industry and their market caps resemble TECD’s market cap.