To the average investor, there are tons of indicators shareholders can use to analyze Mr. Market. Two of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top investment managers can outpace the market by a solid amount (see just how much).
Just as necessary, bullish insider trading sentiment is a second way to analyze the investments you're interested in. There are plenty of stimuli for a corporate insider to drop shares of his or her company, but just one, very clear reason why they would behave bullishly. Several empirical studies have demonstrated the market-beating potential of this strategy if "monkeys" know where to look (learn more here).
Keeping this in mind, it's important to analyze the latest info for Move Inc. (NASDAQ:MOVE).
Heading into Q3, a total of 20 of the hedge funds we track were long in this stock, a change of 0% from one quarter earlier. With the smart money's positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their stakes meaningfully.
According to our 13F database, Peter S. Park's Park West Asset Management had the biggest position in Move Inc. (NASDAQ:MOVE), worth close to $36.2 million, comprising 4.3% of its total 13F portfolio. On Park West Asset Management's heels is David Nierenberg of Nierenberg Investment Management, with a $34.3 million position; 25.1% of its 13F portfolio is allocated to the company. Remaining peers that hold long positions include Michael Doheny's Freshford Capital Management, Jim Simons's Renaissance Technologies and Richard Driehaus's Driehaus Capital.
Due to the fact Move Inc. (NASDAQ:MOVE) has faced bearish sentiment from the top-tier hedge fund industry, logic holds that there were a few money managers that slashed their full holdings in Q1. Intriguingly, Eric Semler's TCS Capital Management said goodbye to the largest stake of the 450+ funds we key on, worth an estimated $2.8 million in stock, and Richard C. Patton of Courage Capital was right behind this move, as the fund dropped about $0.6 million worth. These moves are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Bullish insider trading is particularly usable when the company in question has experienced transactions within the past 180 days. Over the latest 180-day time frame, Move Inc. (NASDAQ:MOVE) has experienced zero unique insiders buying, and zero 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 Move Inc. (NASDAQ:MOVE). These stocks are Blucora Inc (NASDAQ:BCOR), HealthStream, Inc. (NASDAQ:HSTM), Renren Inc (NYSE:RENN), Bitauto Hldg Ltd (ADR) (NYSE:BITA), and SouFun Holdings Limited (ADR) (NYSE:SFUN). All of these stocks are in the internet information providers industry and their market caps are closest to MOVE's market cap.