LogMeIn Inc (NASDAQ:LOGM) investors should be aware of a decrease in enthusiasm from smart money in recent months.
In today’s marketplace, there are tons of methods market participants can use to track publicly traded companies. A duo of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can outpace the S&P 500 by a significant margin (see just how much).
Just as integral, optimistic insider trading activity is another way to parse down the world of equities. Just as you'd expect, there are plenty of motivations for a corporate insider to sell shares of his or her company, but only one, very simple reason why they would behave bullishly. Plenty of empirical studies have demonstrated the impressive potential of this strategy if shareholders understand where to look (learn more here).
With all of this in mind, it's important to take a peek at the key action regarding LogMeIn Inc (NASDAQ:LOGM).
At the end of the first quarter, a total of 12 of the hedge funds we track were long in this stock, a change of -8% from one quarter earlier. With hedgies' positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their holdings substantially.
According to our comprehensive database, Cadian Capital, managed by Eric Bannasch, holds the largest position in LogMeIn Inc (NASDAQ:LOGM). Cadian Capital has a $70.5 million position in the stock, comprising 2% of its 13F portfolio. Coming in second is SAC Capital Advisors, managed by Steven Cohen, which held a $32.4 million position; 0.2% of its 13F portfolio is allocated to the company. Other hedgies with similar optimism include Josh Resnick's Jericho Capital Asset Management, D. E. Shaw's D E Shaw and Ken Griffin's Citadel Investment Group.
Seeing as LogMeIn Inc (NASDAQ:LOGM) has experienced declining sentiment from hedge fund managers, it's easy to see that there was a specific group of fund managers that elected to cut their positions entirely heading into Q2. Intriguingly, George Soros's Soros Fund Management dumped the biggest stake of the "upper crust" of funds we track, worth close to $5.3 million in stock., and Spencer M. Waxman of Shannon River Fund Management was right behind this move, as the fund cut about $2.1 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 1 funds heading into Q2.
Insider buying is particularly usable when the company we're looking at has seen transactions within the past 180 days. Over the latest six-month time period, LogMeIn Inc (NASDAQ:LOGM) has seen 2 unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
Let's go over hedge fund and insider activity in other stocks similar to LogMeIn Inc (NASDAQ:LOGM). These stocks are NQ Mobile Inc (ADR) (NYSE:NQ), Incontact Inc (NASDAQ:SAAS), AutoNavi Holdings Ltd (ADR) (NASDAQ:AMAP), Responsys Inc (NASDAQ:MKTG), and E2open Inc (NASDAQ:EOPN). This group of stocks are in the application software industry and their market caps resemble LOGM's market cap.