Is Constant Contact Inc (NASDAQ:CTCT) going to take off soon? Money managers are becoming less hopeful. The number of long hedge fund bets stayed the same which is a slightly negative development in our experience
In today’s marketplace, there are tons of methods shareholders can use to monitor their holdings. Some of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top money managers can beat the market by a solid amount (see just how much).
Equally as integral, positive insider trading activity is a second way to parse down the stock market universe. As the old adage goes: there are a number of stimuli for an upper level exec to get rid of shares of his or her company, but only one, very clear reason why they would buy. Several academic studies have demonstrated the valuable potential of this tactic if piggybackers understand where to look (learn more here).
Keeping this in mind, it’s important to take a peek at the recent action encompassing Constant Contact Inc (NASDAQ:CTCT).
How have hedgies been trading Constant Contact Inc (NASDAQ:CTCT)?
At year’s end, a total of 8 of the hedge funds we track were long in this stock, a change of 0% from the third quarter. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were upping their stakes considerably.
According to our comprehensive database, George Soros’s Soros Fund Management had the most valuable position in Constant Contact Inc (NASDAQ:CTCT), worth close to $6.4 million, accounting for 0.1% of its total 13F portfolio. Coming in second is Eric Semler of TCS Capital Management, with a $3.6 million position; 2.3% of its 13F portfolio is allocated to the stock. Remaining hedge funds that hold long positions include Ken Griffin’s Citadel Investment Group, Robert B. Gillam’s McKinley Capital Management and Jim Simons’s Renaissance Technologies.
Since Constant Contact Inc (NASDAQ:CTCT) has faced falling interest from the aggregate hedge fund industry, we can see that there lies a certain “tier” of hedge funds who sold off their entire stakes in Q4. It’s worth mentioning that Israel Englander’s Millennium Management cut the largest stake of the 450+ funds we key on, valued at an estimated $2.6 million in stock.. Peter A. Wright’s fund, P.A.W. CAPITAL PARTNERS, also sold off its stock, about $0.7 million worth. These transactions are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What have insiders been doing with Constant Contact Inc (NASDAQ:CTCT)?
Insider purchases made by high-level executives is best served when the primary stock in question has experienced transactions within the past 180 days. Over the last half-year time frame, Constant Contact Inc (NASDAQ:CTCT) has experienced 2 unique insiders buying, and 1 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Constant Contact Inc (NASDAQ:CTCT). These stocks are Marchex, Inc. (NASDAQ:MCHX), National CineMedia, Inc. (NASDAQ:NCMI), MDC Partners Inc. (USA) (NASDAQ:MDCA), Millennial Media, Inc. (NYSE:MM), and Harte-Hanks, Inc. (NYSE:HHS). All of these stocks are in the marketing services industry and their market caps are closest to CTCT’s market cap.