PTC Inc (NASDAQ:PMTC) was in 9 hedge funds' portfolio at the end of the first quarter of 2013. PMTC has experienced a decrease in hedge fund sentiment lately. There were 14 hedge funds in our database with PMTC positions at the end of the previous quarter.
In today’s marketplace, there are dozens of methods market participants can use to track Mr. Market. Some of the best are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best hedge fund managers can beat their index-focused peers by a very impressive amount (see just how much).
Just as important, bullish insider trading sentiment is another way to break down the financial markets. There are a number of stimuli for an executive to get rid of shares of his or her company, but just one, very clear reason why they would buy. Plenty of academic studies have demonstrated the useful potential of this tactic if investors understand where to look (learn more here).
Now, we're going to take a gander at the key action regarding PTC Inc (NASDAQ:PMTC).
At Q1's end, a total of 9 of the hedge funds we track held long positions in this stock, a change of -36% from the first quarter. With hedge funds' sentiment swirling, there exists an "upper tier" of noteworthy hedge fund managers who were increasing their stakes considerably.
According to our comprehensive database, Eric Bannasch's Cadian Capital had the most valuable position in PTC Inc (NASDAQ:PMTC), worth close to $83.5 million, comprising 2.3% of its total 13F portfolio. Coming in second is Chuck Royce of Royce & Associates, with a $16.3 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other peers with similar optimism include Andrew Sandler's Sandler Capital Management, Anand Parekh's Alyeska Investment Group and Israel Englander's Millennium Management.
Since PTC Inc (NASDAQ:PMTC) has witnessed bearish sentiment from hedge fund managers, it's safe to say that there lies a certain "tier" of hedgies that slashed their positions entirely in Q1. Interestingly, Eric Bannasch's Cadian Capital dropped the biggest stake of the 450+ funds we monitor, comprising an estimated $57 million in stock.. Clint Carlson's fund, Carlson Capital, also cut its stock, about $14.2 million worth. These transactions are important to note, as total hedge fund interest dropped by 5 funds in Q1.
Insider trading activity, especially when it's bullish, is most useful when the primary stock in question has experienced transactions within the past half-year. Over the latest 180-day time period, PTC Inc (NASDAQ:PMTC) has experienced zero unique insiders purchasing, and 8 insider sales (see the details of insider trades here).
Let's check out hedge fund and insider activity in other stocks similar to PTC Inc (NASDAQ:PMTC). These stocks are Tyler Technologies, Inc. (NYSE:TYL), ACI Worldwide Inc (NASDAQ:ACIW), Mentor Graphics Corp (NASDAQ:MENT), National Instruments Corp (NASDAQ:NATI), and Concur Technologies, Inc. (NASDAQ:CNQR). This group of stocks are in the technical & system software industry and their market caps resemble PMTC's market cap.