The tech segment saw strong insider activity over the past week. After four insiders acquired stock from Teradata Corporation (NYSE:TDC), Nancy Schoendorf, a Board Director at Shutterfly, Inc. (NASDAQ:SFLY) purchased 15,000 shares of the company’s Common Stock. On Feb. 12th, Mrs. Schoendorf paid an average price of $44.71 per share (stock already trades around $47.32) and now owns 67,421 shares of the company.
Shutterfly, Inc. (NASDAQ:SFLY) is an Internet-based social expression and personal publishing service provider that enables consumers to share, print and preserve their memories by leveraging its technology, manufacturing, web-design and merchandising capabilities. Despite its razor-thin margins and returns, most analysts recommend buying this stock, mainly in account of its above average long-term EPS growth projections. Consensus estimates point towards average growth rates of 20%-21% for the next five years, compared to an industry average of 18%-19%.
Schoendorf’s purchase follows Shutterfly, Inc. (NASDAQ:SFLY)’s announcement of estimate-beating Q4 results and, of the management having authorized an increase of $100.0 million in its share repurchase program. This proves that the company is not only liquid, but also, that it has strong confidence in its fundamentals and its growth potential.
In fact, it is not only Schoendorf that feels bullish about Shutterfly, Inc. (NASDAQ:SFLY)’s future. Donald Chiboucis´ Columbus Circle Investors, the second-largest hedge fund bull, continued to up its stakes in the company over Q4, like it had in Q3. Over the fourth-quarter, the fund increased its position 78,339 shares and now owns 1,286,578 of them.
A major shareholder of Shutterfly, John Murphy‘s Alydar Capital, also upped its stakes over the past two quarters. In the fourth quarter, Murphy’s fund acquired 33,000 shares, increasing its participation in the company to a total of 730,400 shares.
On the other hand, Mariko Gordon‘s Daruma Asset Management, the largest hedge fund shareholder, has been reducing its stakes in the company. Similar to what happens among analysts, sentiment among hedge funds is divided, but tilted towards a bullish sentiment. What do you think about this company?
Disclosure: Javier Hasse holds no position in any stocks mentioned