InnerWorkings, Inc. (NASDAQ:INWK) investors should be aware of a decrease in hedge fund interest lately.
To the average investor, there are plenty of methods investors can use to track publicly traded companies. A pair of the most useful are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best investment managers can outperform their index-focused peers by a significant amount (see just how much).
Just as integral, optimistic insider trading sentiment is a second way to break down the marketplace. Just as you’d expect, there are a variety of motivations for a corporate insider to sell shares of his or her company, but only one, very simple reason why they would buy. Various empirical studies have demonstrated the valuable potential of this strategy if you know where to look (learn more here).
Consequently, let’s take a look at the latest action surrounding InnerWorkings, Inc. (NASDAQ:INWK).
What does the smart money think about InnerWorkings, Inc. (NASDAQ:INWK)?
At the end of the fourth quarter, a total of 6 of the hedge funds we track were long in this stock, a change of -50% from one quarter earlier. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes significantly.
Of the funds we track, Cupps Capital Management, managed by Drew Cupps, holds the largest position in InnerWorkings, Inc. (NASDAQ:INWK). Cupps Capital Management has a $7.4 million position in the stock, comprising 0.8% of its 13F portfolio. Sitting at the No. 2 spot is Richard Driehaus of Driehaus Capital, with a $2.6 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining peers that are bullish include Andy Redleaf’s Whitebox Advisors, Ken Griffin’s Citadel Investment Group and Cliff Asness’s AQR Capital Management.
Since InnerWorkings, Inc. (NASDAQ:INWK) has witnessed bearish sentiment from the entirety of the hedge funds we track, logic holds that there was a specific group of money managers that elected to cut their entire stakes last quarter. At the top of the heap, Robert B. Gillam’s McKinley Capital Management sold off the largest stake of the 450+ funds we track, totaling close to $2.4 million in stock., and Donald Chiboucis of Columbus Circle Investors was right behind this move, as the fund cut about $0.9 million worth. These moves are interesting, as aggregate hedge fund interest fell by 6 funds last quarter.
How are insiders trading InnerWorkings, Inc. (NASDAQ:INWK)?
Bullish insider trading is best served when the company in focus has seen transactions within the past 180 days. Over the latest half-year time period, InnerWorkings, Inc. (NASDAQ:INWK) has experienced zero unique insiders buying, 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 InnerWorkings, Inc. (NASDAQ:INWK). These stocks are Team, Inc. (NYSE:TISI), RPX Corp (NASDAQ:RPXC), Insperity Inc (NYSE:NSP), WNS (Holdings) Limited (ADR) (NYSE:WNS), and LivePerson, Inc. (NASDAQ:LPSN). This group of stocks belong to the business services industry and their market caps are similar to INWK’s market cap.