Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Why Digimarc Corp (DMRC), Turtle Beach Corp (HEAR) & Green Dot Corporation (GDOT) Surged Last Week

Page 1 of 2

Many small-cap stocks were among the biggest gainers of the week that ended on June 26. Notably, the digital watermarking technology provider, Digimarc Corp (NASDAQ:DMRC), audio technology company, Turtle Beach Corp (NASDAQ:HEAR), and the prepaid MasterCard and Visa card issuer, Green Dot Corporation (NYSE:GDOT) all jumped by more than 30% over the last five days. Why did these stocks surge? Were the hedge fund managers right about these stocks? Let’s take a look at the action surrounding these white-hot stocks.


We don’t just track the latest moves of hedge funds. We are, in fact, more interested in their 13F filings, which we use to determine the top 15 small-cap stocks held by the funds we track. We gather and share this information based on 16 years of research which showed that these 15 most popular small-cap picks have a great potential to outperform the market, beating the S&P 500 Total Return Index by nearly one percentage point per month in backtests, and easily beating the most popular large-cap picks of funds, which nonetheless get the majority of their collective capital. Why pay fees to invest in both the best and worst ideas of a particular hedge fund when you can simply mimic only the very best ideas of the best fund managers on your own? Since the beginning of forward testing in August 2012, the Insider Monkey small-cap strategy has outperformed the market every year, returning 145%, nearly 2.5 times greater returns than the S&P 500 during the same period (see more details). Tracking insider activity meanwhile is just as important, as insiders know that extra information about the stock well before portfolio managers and analysts do.

Digimarc Corp (NASDAQ:DMRC)’s stock soared in the last five days following a positive comment from Wal-Mart Stores, Inc. (NYSE:WMT) CEO, Doug McMillon about the company’s digital watermark technology. The stock jumped by around 14% on Tuesday soon after the news broke about the post from the Walmart CEO. The stock gained another 12% on Wednesday and ended the week at $43.19 per share, up by more than 34% for the week. McMillon indicated that they might adapt Digimarc’s digital watermark technology in order to reduce the long queues at Wal-Mart Stores, Inc. (NYSE:WMT)’s checkout counters. The invisible watermark technology from Digimarc makes it easy to scan items, as the watermark is spread all around the product, thereby saving the time needed to search for the bar codes.

At the end of the first quarter, a total of four of the hedge funds tracked by Insider Monkey held long positions in Digimarc Corp (NASDAQ:DMRC), a dip of 20% from one quarter earlier. There was also a 24% dip in aggregate capital investment to $16.5 million by the hedge funds in this stock, compared to the end of 2014. The stock had dropped around 19% in the first quarter. So hedge funds were not bullish on this stock heading into the second quarter. Richard Mashaal‘s Rima Senvest Management holds the largest position in Digimarc Corp with 625,000 shares valued at $13.7 million. From an insiders perspective, there were no insider purchases of the stock this year, though there was one insider selling the stock: Chairman and CEO of Digimarc Corp (NASDAQ:DMRC), Bruce Davis has sold around 24,000 shares in multiple transactions this year.

Richard Mashaal
Richard Mashaal
Rima Senvest Management

Turtle Beach Corp (NASDAQ:HEAR) skyrocketed on Wednesday as the stock went up by around 40% on that day. The audio technology company made an announcement about a deal with Amplified Resource Group, LLC on Tuesday. According to this deal, ARG will be able to add Turtle Beach Corp (NASDAQ:HEAR)’s HyperSound Clear to its product portfolio for the hearing-impaired healthcare industry. HyperSound Clear technology can help direct 3D crisp sound to individuals with hearing loss. Following this announcement on Tuesday, the stock gained around 40% on Wednesday, but eventually dropped around 3% and 9% on Thursday and Friday respectively, ending the week with a 30.69% gain to $2.47 per share. Average Analysts’ price target on Turtle Beach Corp (NASDAQ:HEAR) is at $4.42 per share, suggesting considerable remaining upside still.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!