Is CTC Media, Inc. (NASDAQ:CTCM) a sound stock to buy now? Investors who are in the know are becoming more confident. The number of bullish hedge fund bets inched up by 1 lately.
Just as important, optimistic insider trading activity is another way to parse down the stock market universe. There are many motivations for a corporate insider to downsize shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Several empirical studies have demonstrated the valuable potential of this strategy if “monkeys” understand what to do (learn more here).
Keeping this in mind, it’s important to take a glance at the recent action encompassing CTC Media, Inc. (NASDAQ:CTCM).
What have hedge funds been doing with CTC Media, Inc. (NASDAQ:CTCM)?
At the end of the fourth quarter, a total of 11 of the hedge funds we track held long positions in this stock, a change of 10% from the third quarter. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were increasing their stakes significantly.
Of the funds we track, Zenit Asset Management AB, managed by Patrik Brummer, holds the biggest position in CTC Media, Inc. (NASDAQ:CTCM). Zenit Asset Management AB has a $5.8 million position in the stock, comprising 2.9% of its 13F portfolio. The second largest stake is held by Ken Griffin of Citadel Investment Group, with a $3.7 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining hedgies that are bullish include Israel Englander’s Millennium Management, D. E. Shaw’s D E Shaw and Glenn Russell Dubin’s Highbridge Capital Management.
With a general bullishness amongst the heavyweights, key hedge funds have jumped into CTC Media, Inc. (NASDAQ:CTCM) headfirst. Highbridge Capital Management, managed by Glenn Russell Dubin, initiated the largest position in CTC Media, Inc. (NASDAQ:CTCM). Highbridge Capital Management had 1 million invested in the company at the end of the quarter. Mike Vranos’s Ellington also made a $0.5 million investment in the stock during the quarter. The only other fund with a new position in the stock is Ken Gray and Steve Walsh’s Bryn Mawr Capital.
How are insiders trading CTC Media, Inc. (NASDAQ:CTCM)?
Bullish insider trading is at its handiest when the company in focus has experienced transactions within the past half-year. Over the last half-year time frame, CTC Media, Inc. (NASDAQ:CTCM) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to CTC Media, Inc. (NASDAQ:CTCM). These stocks are Scripps Networks Interactive, Inc. (NYSE:SNI), Nexstar Broadcasting Group, Inc. (NASDAQ:NXST), LIN TV Corp (NYSE:TVL), Belo Corp. (NYSE:BLC), and Sinclair Broadcast Group, Inc. (NASDAQ:SBGI). This group of stocks belong to the broadcasting – tv industry and their market caps are similar to CTCM’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Scripps Networks Interactive, Inc. (NYSE:SNI) | 28 | 0 | 12 |
| Nexstar Broadcasting Group, Inc. (NASDAQ:NXST) | 14 | 0 | 6 |
| LIN TV Corp (NYSE:TVL) | 9 | 0 | 6 |
| Belo Corp. (NYSE:BLC) | 17 | 0 | 5 |
| Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) | 12 | 0 | 5 |
With the returns exhibited by the aforementioned time-tested strategies, everyday investors should always pay attention to hedge fund and insider trading activity, and CTC Media, Inc. (NASDAQ:CTCM) is no exception.
