Is TeleCommunication Systems, Inc. (NASDAQ:TSYS) worth your attention right now? Investors who are in the know are becoming less confident. The number of bullish hedge fund positions stayed the same which is a slightly negative development in our experience
In today’s marketplace, there are dozens of gauges market participants can use to track Mr. Market. A duo of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite hedge fund managers can trounce their index-focused peers by a very impressive margin (see just how much).
Equally as important, optimistic insider trading activity is a second way to break down the financial markets. There are many motivations for an upper level exec to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Several academic studies have demonstrated the market-beating potential of this method if investors understand what to do (learn more here).
With all of this in mind, we're going to take a glance at the latest action encompassing TeleCommunication Systems, Inc. (NASDAQ:TSYS).
In preparation for this year, a total of 7 of the hedge funds we track were bullish in this stock, a change of 0% from the previous quarter. With hedgies' capital changing hands, there exists a few notable hedge fund managers who were increasing their holdings significantly.
Due to the fact that TeleCommunication Systems, Inc. (NASDAQ:TSYS) has experienced a declination in interest from the aggregate hedge fund industry, we can see that there was a specific group of fund managers that elected to cut their entire stakes in Q4. Intriguingly, Ben Levine, Andrew Manuel and Stefan Renold's LMR Partners dropped the biggest investment of the "upper crust" of funds we monitor, totaling close to $0.2 million in stock. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Insider buying is particularly usable when the company in question has seen transactions within the past six months. Over the latest six-month time period, TeleCommunication Systems, Inc. (NASDAQ:TSYS) has seen zero 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 TeleCommunication Systems, Inc. (NASDAQ:TSYS). These stocks are Ceragon Networks Ltd. (NASDAQ:CRNT), AudioCodes Ltd. (NASDAQ:AUDC), Westell Technologies Inc. (NASDAQ:WSTL), Ikanos Communications, Inc. (NASDAQ:IKAN), and Parametric Sound Corp (NASDAQ:PAMT). This group of stocks belong to the communication equipment industry and their market caps resemble TSYS's market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Ceragon Networks Ltd. (NASDAQ:CRNT)||5||0||0|
|AudioCodes Ltd. (NASDAQ:AUDC)||4||0||0|
|Westell Technologies Inc. (NASDAQ:WSTL)||6||0||1|
|Ikanos Communications, Inc. (NASDAQ:IKAN)||2||1||0|
|Parametric Sound Corp (NASDAQ:PAMT)||1||0||2|
With the returns demonstrated by Insider Monkey's research, retail investors must always monitor hedge fund and insider trading sentiment, and TeleCommunication Systems, Inc. (NASDAQ:TSYS) shareholders fit into this picture quite nicely.