Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

OpenTable Inc (OPEN): Hedge Funds and Insiders Are Bearish, What Should You Do?

Page 1 of 2

OpenTable Inc (NASDAQ:OPEN) investors should pay attention to a decrease in activity from the world’s largest hedge funds lately.

OpenTable Inc (NASDAQ:OPEN)

According to most shareholders, hedge funds are seen as underperforming, old financial tools of the past. While there are more than 8000 funds in operation today, we choose to focus on the bigwigs of this group, about 450 funds. Most estimates calculate that this group oversees the majority of the smart money’s total asset base, and by paying attention to their highest performing picks, we have unsheathed a few investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

Equally as beneficial, bullish insider trading activity is another way to break down the stock market universe. Just as you’d expect, there are many reasons for a bullish insider to get rid of shares of his or her company, but only one, very obvious reason why they would behave bullishly. Several empirical studies have demonstrated the valuable potential of this tactic if piggybackers understand what to do (learn more here).

Keeping this in mind, it’s important to take a look at the recent action regarding OpenTable Inc (NASDAQ:OPEN).

What have hedge funds been doing with OpenTable Inc (NASDAQ:OPEN)?

Heading into Q2, a total of 15 of the hedge funds we track held long positions in this stock, a change of -21% from the first quarter. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were boosting their holdings considerably.

Of the funds we track, Cantillon Capital Management, managed by William von Mueffling, holds the most valuable position in OpenTable Inc (NASDAQ:OPEN). Cantillon Capital Management has a $67.1 million position in the stock, comprising 2.1% of its 13F portfolio. Coming in second is John Thaler of JAT Capital Management, with a $60.1 million position; 3% of its 13F portfolio is allocated to the company. Other peers that are bullish include Sanford J. Colen’s Apex Capital, Christopher R. Hansen’s Valiant Capital and Steven Cohen’s SAC Capital Advisors.

Judging by the fact that OpenTable Inc (NASDAQ:OPEN) has experienced declining sentiment from hedge fund managers, logic holds that there exists a select few money managers that decided to sell off their entire stakes last quarter. Interestingly, Robert Pitts’s Steadfast Capital Management cut the biggest position of all the hedgies we track, worth an estimated $35.9 million in stock., and Sanford J. Colen of Apex Capital was right behind this move, as the fund dumped about $19.7 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 4 funds last quarter.

What have insiders been doing with OpenTable Inc (NASDAQ:OPEN)?

Insider purchases made by high-level executives is at its handiest when the company in focus has seen transactions within the past 180 days. Over the latest six-month time frame, OpenTable Inc (NASDAQ:OPEN) has seen zero unique insiders buying, and 4 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to OpenTable Inc (NASDAQ:OPEN). These stocks are Bankrate Inc (NYSE:RATE), InterXion Holding NV (NYSE:INXN), Shutterfly, Inc. (NASDAQ:SFLY), Kayak Software Corp (NASDAQ:KYAK), and Yelp Inc (NYSE:YELP). This group of stocks are in the internet information providers industry and their market caps match OPEN’s market cap.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!