ACI Worldwide Inc (NASDAQ:ACIW) has seen a decrease in support from the world’s most elite money managers in recent months.
In today’s marketplace, there are a multitude of gauges shareholders can use to watch the equity markets. Some of the best are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best money managers can outperform the market by a healthy amount (see just how much).
Just as important, positive insider trading activity is another way to parse down the world of equities. As the old adage goes: there are lots of reasons for a corporate insider to sell shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of academic studies have demonstrated the market-beating potential of this method if shareholders know where to look (learn more here).
Consequently, let’s take a gander at the latest action surrounding ACI Worldwide Inc (NASDAQ:ACIW).
How have hedgies been trading ACI Worldwide Inc (NASDAQ:ACIW)?
Heading into 2013, a total of 11 of the hedge funds we track were long in this stock, a change of -8% from the third quarter. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were boosting their stakes meaningfully.
According to our comprehensive database, P2 Capital Partners, managed by Claus Moller, holds the most valuable position in ACI Worldwide Inc (NASDAQ:ACIW). P2 Capital Partners has a $55 million position in the stock, comprising 10.8% of its 13F portfolio. On P2 Capital Partners’s heels is Amy Minella of Cardinal Capital, with a $34 million position; the fund has 2.3% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include Chuck Royce’s Royce & Associates, John C. Walker’s Stonerise Capital Management and Donald Chiboucis’s Columbus Circle Investors.
Because ACI Worldwide Inc (NASDAQ:ACIW) has experienced falling interest from the entirety of the hedge funds we track, it’s safe to say that there lies a certain “tier” of funds who were dropping their full holdings in Q4. It’s worth mentioning that Jacob Gottlieb’s Visium Asset Management said goodbye to the largest position of the “upper crust” of funds we track, comprising close to $1 million in stock., and Paul Tudor Jones of Tudor Investment Corp was right behind this move, as the fund dropped about $0 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest fell by 1 funds in Q4.
How are insiders trading ACI Worldwide Inc (NASDAQ:ACIW)?
Insider buying is particularly usable when the company in focus has seen transactions within the past six months. Over the latest six-month time frame, ACI Worldwide Inc (NASDAQ:ACIW) has experienced zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to ACI Worldwide Inc (NASDAQ:ACIW). These stocks are Tyler Technologies, Inc. (NYSE:TYL), Mentor Graphics Corp (NASDAQ:MENT), PTC Inc (NASDAQ:PMTC), Concur Technologies, Inc. (NASDAQ:CNQR), and National Instruments Corp (NASDAQ:NATI). All of these stocks are in the technical & system software industry and their market caps are closest to ACIW’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Tyler Technologies, Inc. (NYSE:TYL)||9||3||8|
|Mentor Graphics Corp (NASDAQ:MENT)||16||0||4|
|PTC Inc (NASDAQ:PMTC)||12||0||8|
|Concur Technologies, Inc. (NASDAQ:CNQR)||12||0||9|
|National Instruments Corp (NASDAQ:NATI)||8||1||4|
With the results demonstrated by the aforementioned tactics, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and ACI Worldwide Inc (NASDAQ:ACIW) applies perfectly to this mantra.
Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% for the S&P 500 index. Try it now by clicking the link above.