DealerTrack Technologies Inc (NASDAQ:TRAK) shareholders have witnessed a decrease in hedge fund sentiment recently.
To the average investor, there are tons of metrics shareholders can use to monitor Mr. Market. Some of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best fund managers can outpace the market by a healthy amount (see just how much).
Just as beneficial, bullish insider trading activity is another way to parse down the stock market universe. Obviously, there are a variety of incentives for an executive to downsize shares of his or her company, but just one, very simple reason why they would buy. Several empirical studies have demonstrated the valuable potential of this method if piggybackers understand what to do (learn more here).
Keeping this in mind, it’s important to take a peek at the key action surrounding DealerTrack Technologies Inc (NASDAQ:TRAK).
How are hedge funds trading DealerTrack Technologies Inc (NASDAQ:TRAK)?
In preparation for this quarter, a total of 4 of the hedge funds we track held long positions in this stock, a change of -56% from the previous quarter.
Seeing as DealerTrack Technologies Inc (NASDAQ:TRAK) has witnessed falling interest from hedge fund managers, we can see that there were a few hedgies that decided to sell off their positions entirely heading into Q2. Intriguingly, Ian P. Murray’s Lanexa Global Management dropped the biggest investment of the 450+ funds we track, worth an estimated $2.5 million in stock.. Paul Tudor Jones’s fund, Tudor Investment Corp, also sold off its stock, about $0.5 million worth. These moves are important to note, as aggregate hedge fund interest fell by 5 funds heading into Q2.
What do corporate executives and insiders think about DealerTrack Technologies Inc (NASDAQ:TRAK)?
Insider buying is best served when the company in focus has seen transactions within the past six months. Over the latest six-month time period, DealerTrack Technologies Inc (NASDAQ:TRAK) has seen zero unique insiders purchasing, and 8 insider sales (see the details of insider trades here).
With the results demonstrated by our tactics, retail investors must always pay attention to hedge fund and insider trading activity, and DealerTrack Technologies Inc (NASDAQ:TRAK) shareholders fit into this picture quite nicely.