Diebold Incorporated (NYSE:DBD) was in 14 hedge funds’ portfolio at the end of the first quarter of 2013. DBD has seen an increase in activity from the world’s largest hedge funds in recent months. There were 12 hedge funds in our database with DBD holdings at the end of the previous quarter.
In the 21st century investor’s toolkit, there are dozens of metrics shareholders can use to analyze their holdings. A duo of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best money managers can outperform the S&P 500 by a healthy margin (see just how much).
Equally as beneficial, optimistic insider trading activity is a second way to parse down the financial markets. As the old adage goes: there are many incentives for an insider to get rid of shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this tactic if shareholders know where to look (learn more here).
With these “truths” under our belt, it’s important to take a peek at the latest action surrounding Diebold Incorporated (NYSE:DBD).
What does the smart money think about Diebold Incorporated (NYSE:DBD)?
In preparation for this quarter, a total of 14 of the hedge funds we track were long in this stock, a change of 17% from the first quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes significantly.
When looking at the hedgies we track, GAMCO Investors, managed by Mario Gabelli, holds the biggest position in Diebold Incorporated (NYSE:DBD). GAMCO Investors has a $106.3 million position in the stock, comprising 0.7% of its 13F portfolio. The second largest stake is held by Royce & Associates, managed by Chuck Royce, which held a $32 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Jim Simons’s Renaissance Technologies, Jeffrey Smith’s Starboard Value LP and SAC Subsidiary’s Sigma Capital Management.
Now, key hedge funds were leading the bulls’ herd. Renaissance Technologies, managed by Jim Simons, assembled the most valuable position in Diebold Incorporated (NYSE:DBD). Renaissance Technologies had 19.5 million invested in the company at the end of the quarter. Jeffrey Smith’s Starboard Value LP also initiated a $14.4 million position during the quarter. The following funds were also among the new DBD investors: Mike Vranos’s Ellington, D. E. Shaw’s D E Shaw, and SAC Subsidiary’s CR Intrinsic Investors.
What have insiders been doing with Diebold Incorporated (NYSE:DBD)?
Insider trading activity, especially when it’s bullish, is best served when the company in question has seen transactions within the past six months. Over the last half-year time period, Diebold Incorporated (NYSE:DBD) has seen 2 unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Diebold Incorporated (NYSE:DBD). These stocks are Progress Software Corporation (NASDAQ:PRGS), Compuware Corporation (NASDAQ:CPWR), Advent Software, Inc. (NASDAQ:ADVS), Manhattan Associates, Inc. (NASDAQ:MANH), and RealPage, Inc. (NASDAQ:RP). This group of stocks are the members of the application software industry and their market caps are closest to DBD’s market cap.