To the average investor, there are tons of gauges investors can use to analyze publicly traded companies. A pair of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite money managers can outpace the broader indices by a superb margin (see just how much).
Equally as useful, optimistic insider trading sentiment is a second way to analyze the financial markets. Just as you'd expect, there are a number of incentives for an upper level exec to sell shares of his or her company, but only one, very obvious reason why they would buy. Various empirical studies have demonstrated the market-beating potential of this tactic if shareholders understand where to look (learn more here).
Keeping this in mind, we're going to discuss the newest info surrounding InterXion Holding NV (NYSE:INXN).
In preparation for the third quarter, a total of 20 of the hedge funds we track held long positions in this stock, a change of -17% from one quarter earlier. With hedge funds' positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their stakes considerably.
When using filings from the hedgies we track, Eminence Capital, managed by Ricky Sandler, holds the most valuable position in InterXion Holding NV (NYSE:INXN). Eminence Capital has a $58.3 million position in the stock, comprising 1.4% of its 13F portfolio. The second largest stake is held by Hoplite Capital Management, managed by John Lykouretzos, which held a $51.8 million position; 1.8% of its 13F portfolio is allocated to the stock. Remaining hedge funds that hold long positions include Spencer M. Waxman's Shannon River Fund Management, Josh Resnick's Jericho Capital Asset Management and D. E. Shaw's D E Shaw.
Since InterXion Holding NV (NYSE:INXN) has witnessed bearish sentiment from upper-tier hedge fund managers, logic holds that there is a sect of hedgies who sold off their positions entirely heading into Q2. At the top of the heap, Donald Chiboucis's Columbus Circle Investors dropped the biggest position of the "upper crust" of funds we key on, valued at an estimated $14.3 million in stock. Lee Hobson's fund, Highside Capital Management, also dropped its stock, about $5.7 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest fell by 4 funds heading into Q2.
Bullish insider trading is at its handiest when the company in question has experienced transactions within the past half-year. Over the latest half-year time period, InterXion Holding NV (NYSE:INXN) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll go over the relationship between both of these indicators in other stocks similar to InterXion Holding NV (NYSE:INXN). These stocks are Sohu.com Inc (NASDAQ:SOHU), OpenTable Inc (NASDAQ:OPEN), Yelp Inc (NYSE:YELP), Kayak Software Corp (NASDAQ:KYAK), and Shutterfly, Inc. (NASDAQ:SFLY). This group of stocks belong to the internet information providers industry and their market caps are similar to INXN's market cap.