Is Lionbridge Technologies, Inc. (NASDAQ:LIOX) a safe investment now? The smart money is betting on the stock. The number of bullish hedge fund positions inched up by 2 recently.
In today’s marketplace, there are tons of gauges investors can use to analyze their holdings. Some of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can outperform their index-focused peers by a superb amount (see just how much).
Equally as integral, positive insider trading sentiment is another way to parse down the stock market universe. There are a variety of incentives for an insider to downsize shares of his or her company, but just one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the market-beating potential of this tactic if investors know what to do (learn more here).
With these "truths" under our belt, we're going to take a gander at the recent action surrounding Lionbridge Technologies, Inc. (NASDAQ:LIOX).
In preparation for this year, a total of 11 of the hedge funds we track were bullish in this stock, a change of 22% from one quarter earlier. With hedge funds' sentiment swirling, there exists an "upper tier" of notable hedge fund managers who were boosting their stakes significantly.
When looking at the hedgies we track, Glenhill Advisors, managed by Glenn J. Krevlin, holds the biggest position in Lionbridge Technologies, Inc. (NASDAQ:LIOX). Glenhill Advisors has a $22 million position in the stock, comprising 3.8% of its 13F portfolio. Sitting at the No. 2 spot is Israel Englander of Millennium Management, with a $1 million position; the fund has 0% of its 13F portfolio invested in the stock. Remaining hedge funds that hold long positions include Robert B. Gillam's McKinley Capital Management, Joel Greenblatt's Gotham Asset Management and Jim Simons's Renaissance Technologies.
As aggregate interest increased, key hedge funds were breaking ground themselves. McKinley Capital Management, managed by Robert B. Gillam, assembled the most outsized position in Lionbridge Technologies, Inc. (NASDAQ:LIOX). McKinley Capital Management had 1 million invested in the company at the end of the quarter. Joel Greenblatt's Gotham Asset Management also initiated a $1 million position during the quarter. The other funds with brand new LIOX positions are Peter Algert and Kevin Coldiron's Algert Coldiron Investors, Neil Chriss's Hutchin Hill Capital, and Steven Cohen's SAC Capital Advisors.
Insider buying is most useful when the company in focus has seen transactions within the past 180 days. Over the last half-year time period, Lionbridge Technologies, Inc. (NASDAQ:LIOX) has experienced zero unique insiders buying, and 1 insider sales (see the details of insider trades here).
Let's also examine hedge fund and insider activity in other stocks similar to Lionbridge Technologies, Inc. (NASDAQ:LIOX). These stocks are PRGX Global Inc (NASDAQ:PRGX), Limelight Networks, Inc. (NASDAQ:LLNW), Swisher Hygiene, Inc. (NASDAQ:SWSH), Carbonite Inc (NASDAQ:CARB), and PowerSecure International, Inc. (NASDAQ:POWR). This group of stocks are the members of the business services industry and their market caps are similar to LIOX's market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|PRGX Global Inc (NASDAQ:PRGX)||7||0||1|
|Limelight Networks, Inc. (NASDAQ:LLNW)||7||2||2|
|Swisher Hygiene, Inc. (NASDAQ:SWSH)||3||0||0|
|Carbonite Inc (NASDAQ:CARB)||3||0||6|
|PowerSecure International, Inc. (NASDAQ:POWR)||2||1||0|
With the returns demonstrated by the aforementioned studies, retail investors should always keep an eye on hedge fund and insider trading activity, and Lionbridge Technologies, Inc. (NASDAQ:LIOX) is no exception.