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Priceline.com Inc (PCLN): Insiders Aren’t Crazy About It

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Priceline.com Inc (NASDAQ:PCLN) was in 67 hedge funds’ portfolio at the end of March. PCLN investors should pay attention to a decrease in support from the world’s most elite money managers lately. There were 70 hedge funds in our database with PCLN holdings at the end of the previous quarter.

Priceline.com Inc (NASDAQ:PCLN)According to most traders, hedge funds are assumed to be underperforming, old financial tools of years past. While there are more than 8000 funds trading at present, we look at the masters of this group, around 450 funds. It is estimated that this group controls the lion’s share of all hedge funds’ total capital, and by paying attention to their top equity investments, we have figured out a few investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year 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 trumped the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

Just as important, positive insider trading sentiment is another way to break down the world of equities. There are many incentives for an insider to sell shares of his or her company, but only one, very simple reason why they would buy. Plenty of empirical studies have demonstrated the impressive potential of this method if “monkeys” understand what to do (learn more here).

With all of this in mind, it’s important to take a glance at the recent action surrounding Priceline.com Inc (NASDAQ:PCLN).

What does the smart money think about Priceline.com Inc (NASDAQ:PCLN)?

Heading into Q2, a total of 67 of the hedge funds we track were bullish in this stock, a change of -4% from the first quarter. With hedge funds’ sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their stakes significantly.

According to our comprehensive database, Stephen Mandel’s Lone Pine Capital had the most valuable position in Priceline.com Inc (NASDAQ:PCLN), worth close to $1.2182 billion, comprising 6.3% of its total 13F portfolio. On Lone Pine Capital’s heels is Blue Ridge Capital, managed by John Griffin, which held a $307.6 million position; the fund has 3.9% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include D. E. Shaw’s D E Shaw, Philippe Laffont’s Coatue Management and Lee Ainslie’s Maverick Capital.

Since Priceline.com Inc (NASDAQ:PCLN) has faced bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there exists a select few hedge funds that elected to cut their positions entirely at the end of the first quarter. Interestingly, Robert Boucai’s Newbrook Capital Advisors sold off the biggest position of the 450+ funds we watch, totaling an estimated $50.3 million in stock.. Israel Englander’s fund, Millennium Management, also dumped its call options., about $36.8 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 3 funds at the end of the first quarter.

How are insiders trading Priceline.com Inc (NASDAQ:PCLN)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company in focus has experienced transactions within the past six months. Over the last half-year time period, Priceline.com Inc (NASDAQ:PCLN) has experienced zero unique insiders purchasing, and 5 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Priceline.com Inc (NASDAQ:PCLN). These stocks are MakeMyTrip Limited (NASDAQ:MMYT), Orbitz Worldwide, Inc. (NYSE:OWW), Cedar Fair, L.P. (NYSE:FUN), Six Flags Entertainment Corp (NYSE:SIX), and Carnival plc (ADR) (NYSE:CUK). All of these stocks are in the general entertainment industry and their market caps match PCLN’s market cap.

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