SBA Communications Corporation (NASDAQ:SBAC) was in 37 hedge funds’ portfolio at the end of the first quarter of 2013. SBAC investors should be aware of a decrease in hedge fund sentiment lately. There were 43 hedge funds in our database with SBAC holdings at the end of the previous quarter.
In the financial world, there are dozens of indicators investors can use to watch the equity markets. Two of the most useful are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best investment managers can beat the market by a healthy margin (see just how much).
Equally as important, positive insider trading sentiment is a second way to break down the world of equities. Obviously, there are many motivations for an executive to sell shares of his or her company, but just one, very simple reason why they would buy. Plenty of empirical studies have demonstrated the market-beating potential of this tactic if “monkeys” know what to do (learn more here).
Now, we’re going to take a peek at the latest action regarding SBA Communications Corporation (NASDAQ:SBAC).
What does the smart money think about SBA Communications Corporation (NASDAQ:SBAC)?
Heading into Q2, a total of 37 of the hedge funds we track were long in this stock, a change of -14% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their stakes substantially.
Of the funds we track, Citadel Investment Group, managed by Ken Griffin, holds the most valuable position in SBA Communications Corporation (NASDAQ:SBAC). Citadel Investment Group has a $237.6 million position in the stock, comprising 0.4% of its 13F portfolio. On Citadel Investment Group’s heels is Renaissance Technologies, managed by Jim Simons, which held a $135.9 million position; 0.3% of its 13F portfolio is allocated to the stock. Other peers that are bullish include Sean Cullinan’s Point State Capital, Doug Silverman and Alexander Klabin’s Senator Investment Group and John Overdeck and David Siegel’s Two Sigma Advisors.
Because SBA Communications Corporation (NASDAQ:SBAC) has faced falling interest from hedge fund managers, it’s easy to see that there is a sect of fund managers that decided to sell off their positions entirely last quarter. Intriguingly, Keith Meister’s Corvex Capital dumped the biggest position of the 450+ funds we monitor, valued at an estimated $28.9 million in stock., and Malcolm Fairbairn of Ascend Capital was right behind this move, as the fund sold off about $23.7 million worth. These moves are interesting, as aggregate hedge fund interest dropped by 6 funds last quarter.
How are insiders trading SBA Communications Corporation (NASDAQ:SBAC)?
Insider trading activity, especially when it’s bullish, is most useful when the company in question has experienced transactions within the past half-year. Over the latest 180-day time frame, SBA Communications Corporation (NASDAQ:SBAC) has seen zero unique insiders purchasing, and 7 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to SBA Communications Corporation (NASDAQ:SBAC). These stocks are Avis Budget Group Inc. (NASDAQ:CAR), Ryder System, Inc. (NYSE:R), AMERCO (NASDAQ:UHAL), United Rentals, Inc. (NYSE:URI), and Hertz Global Holdings, Inc. (NYSE:HTZ). All of these stocks are in the rental & leasing services industry and their market caps are similar to SBAC’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Avis Budget Group Inc. (NASDAQ:CAR) | 33 | 0 | 9 |
| Ryder System, Inc. (NYSE:R) | 24 | 0 | 10 |
| AMERCO (NASDAQ:UHAL) | 13 | 0 | 1 |
| United Rentals, Inc. (NYSE:URI) | 50 | 0 | 8 |
| Hertz Global Holdings, Inc. (NYSE:HTZ) | 68 | 1 | 18 |
With the results shown by the aforementioned time-tested strategies, everyday investors should always watch hedge fund and insider trading sentiment, and SBA Communications Corporation (NASDAQ:SBAC) applies perfectly to this mantra.
