Akamai Technologies, Inc. (NASDAQ:AKAM): In today’s marketplace, there are many metrics investors can use to track Mr. Market. Two of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best fund managers can trounce the market by a healthy amount (see just how much).
Just as crucial, optimistic insider trading sentiment is a second way to look at the stock market universe. Just as you’d expect, there are many incentives for an executive to drop shares of his or her company, but only one, very clear reason why they would buy. Many academic studies have demonstrated the market-beating potential of this method if “monkeys” know what to do (learn more here).
Thus, let’s examine the latest info about Akamai Technologies, Inc. (NASDAQ:AKAM).
What have hedge funds been doing with Akamai Technologies, Inc. (NASDAQ:AKAM)?
Heading into Q3, a total of 24 of the hedge funds we track held long positions in this stock, a change of -23% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their stakes considerably.
According to our 13F database, Clifton S. Robbins’s Blue Harbour Group had the largest position in Akamai Technologies, Inc. (NASDAQ:AKAM), worth close to $132.4 million, comprising 10.1% of its total 13F portfolio. Coming in second is Panayotis Sparaggis of Alkeon Capital Management, with a $48.8 million position; 1.1% of its 13F portfolio is allocated to the company. Other hedgies with similar optimism include Jim Simons’s Renaissance Technologies, Michael Doheny’s Freshford Capital Management and John C. Walker’s Stonerise Capital Management.
Due to the fact Akamai Technologies, Inc. (NASDAQ:AKAM) has faced declining interest from the top-tier hedge fund industry, it’s easy to see that there was a specific group of money managers that slashed their full holdings in Q1. Interestingly, Philippe Laffont’s Coatue Management sold off the biggest position of all the hedgies we key on, worth an estimated $190.2 million in call options., and Jeffrey Jon Berney of TriOaks Capital Management was right behind this move, as the fund said goodbye to about $73.6 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 7 funds in Q1.
What have insiders been doing with Akamai Technologies, Inc. (NASDAQ:AKAM)?
Insider buying is particularly usable when the primary stock in question has seen transactions within the past six months. Over the latest six-month time period, Akamai Technologies, Inc. (NASDAQ:AKAM) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Akamai Technologies, Inc. (NASDAQ:AKAM). These stocks are AOL, Inc. (NYSE:AOL), IAC/InterActiveCorp (NASDAQ:IACI), Groupon Inc (NASDAQ:GRPN), Yandex NV (NASDAQ:YNDX), and Tripadvisor Inc (NASDAQ:TRIP). This group of stocks are in the internet information providers industry and their market caps are closest to AKAM’s market cap.