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Should You Buy SBA Communications Corporation (NASDAQ:SBAC)?

Is SBA Communications Corporation (NASDAQ:SBAC) going to take off soon? The best stock pickers are becoming hopeful. The number of bullish hedge fund positions went up by 7 in recent months.

In the financial world, there are plenty of methods market participants can use to watch Mr. Market. Some of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best fund managers can trounce the S&P 500 by a healthy amount (see just how much).

Equally as important, bullish insider trading sentiment is another way to parse down the financial markets. As the old adage goes: there are lots of incentives for a bullish insider to sell shares of his or her company, but only one, very clear reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this method if you know where to look (learn more here).

Consequently, let’s take a look at the latest action encompassing SBA Communications Corporation (NASDAQ:SBAC).

How are hedge funds trading SBA Communications Corporation (NASDAQ:SBAC)?

At year’s end, a total of 37 of the hedge funds we track were bullish in this stock, a change of 23% from the third quarter. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their stakes meaningfully.

Of the funds we track, Ken Griffin’s Citadel Investment Group had the biggest position in SBA Communications Corporation (NASDAQ:SBAC), worth close to $234 million, comprising 0.4% of its total 13F portfolio. Coming in second is Point State Capital, managed by Sean Cullinan, which held a $179 million position; the fund has 2.7% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include John Thaler’s JAT Capital Management, John Overdeck and David Siegel’s Two Sigma Advisors and Doug Silverman’s Senator Investment Group.

As one would reasonably expect, key hedge funds were leading the bulls’ herd. JAT Capital Management, managed by John Thaler, assembled the most outsized position in SBA Communications Corporation (NASDAQ:SBAC). JAT Capital Management had 94 million invested in the company at the end of the quarter. Doug Silverman’s Senator Investment Group also initiated a $78 million position during the quarter. The other funds with brand new SBAC positions are Steven Cohen’s SAC Capital Advisors, Noam Gottesman’s GLG Partners, and Glenn Russell Dubin’s Highbridge Capital Management.

Insider trading activity in SBA Communications Corporation (NASDAQ:SBAC)

Insider trading activity, especially when it’s bullish, is at its handiest when the company in question has experienced transactions within the past half-year. Over the latest six-month time frame, SBA Communications Corporation (NASDAQ:SBAC) has experienced zero unique insiders buying, and 8 insider sales (see the details of insider trades here).

With the results shown by the aforementioned strategies, retail investors must always watch hedge fund and insider trading sentiment, and SBA Communications Corporation (NASDAQ:SBAC) shareholders fit into this picture quite nicely.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

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