How Inc (PCLN) Gets to $1,000

Page 1 of 2 Inc (NASDAQ:PCLN) is on its journey to $1,000 a share. Here’s one metric that suggests it will reach this mark soon.

In the eyes of many of your fellow readers, hedge funds are perceived as useless, old financial tools of a period lost to current times. Although there are more than 8,000 hedge funds with their doors open today, Insider Monkey looks at the masters of this club, close to 525 funds. It is widely held that this group oversees the majority of the smart money’s total assets, and by monitoring their highest quality stock picks, we’ve discovered a number of investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).

Equally as useful, optimistic insider trading sentiment is another way to analyze the world of equities. Just as you’d expect, there are a number of motivations for an executive to get rid of shares of his or her company, but only one, very clear reason why they would initiate a purchase. Several academic studies have demonstrated the market-beating potential of this method if you understand where to look (learn more here). Inc (NASDAQ:PCLN)

Furthermore, it’s important to analyze the recent info surrounding Inc (NASDAQ:PCLN).

Hedge fund activity in Inc (NASDAQ:PCLN)

Heading into Q3, a total of 76 of the hedge funds we track were bullish in this stock, a change of 13% from the first quarter. With hedge funds’ sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their holdings substantially.

According to our 13F database, Stephen Mandel’s Lone Pine Capital had the most valuable position in Inc (NASDAQ:PCLN), worth close to $1.4206 billion, comprising 6.9% of its total 13F portfolio. Sitting at the No. 2 spot is Coatue Management, managed by Philippe Laffont, which held a $443.7 million position; 4.9% of its 13F portfolio is allocated to the company. Other hedge funds that are bullish include Paul Reeder and Edward Shapiro’s PAR Capital Management, Chase Coleman and Feroz Dewan’s Tiger Global Management LLC and John Griffin’s Blue Ridge Capital.

As aggregate interest spiked, specific money managers have been driving this bullishness. Lone Pine Capital, managed by Stephen Mandel, created the most valuable position in Inc (NASDAQ:PCLN). Lone Pine Capital had 1.4206 billion invested in the company at the end of the quarter. Philippe Laffont’s Coatue Management also made a $443.7 million investment in the stock during the quarter. The other funds with brand new PCLN positions are Paul ReederáandáEdward Shapiro’s PAR Capital Management, Chase Coleman and Feroz Dewan’s Tiger Global Management LLC, and John Griffin’s Blue Ridge Capital.

How are insiders trading Inc (NASDAQ:PCLN)?

Legal insider trading, particularly when it’s bullish, is best served when the company in question has seen transactions within the past half-year. Over the latest 180-day time period, Inc (NASDAQ:PCLN) has seen zero unique insiders buying, and 5 insider sales (see the details of insider trades here).

We’ll also take a look at the relationship between both of these indicators in other stocks similar to Inc (NASDAQ:PCLN). These stocks are MakeMyTrip Limited (NASDAQ:MMYT), Orbitz Worldwide, Inc. (NYSE:OWW), Cedar Fair, L.P. (NYSE:FUN), Six Flags Entertainment Corp (NYSE:SIX), and Carnival plc (ADR) (NYSE:CUK). This group of stocks are the members of the general entertainment industry and their market caps are similar to PCLN’s market cap.

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