Is it smart to be bullish on Advent Software, Inc. (NASDAQ:ADVS)?
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Equally as key, positive insider trading activity is a second way to look at the investments you’re interested in. Just as you’d expect, there are a variety of incentives for an executive to get rid of shares of his or her company, but only one, very simple reason why they would buy. Various academic studies have demonstrated the market-beating potential of this tactic if you know where to look (learn more here).
Thus, it’s important to analyze the recent info surrounding Advent Software, Inc. (NASDAQ:ADVS).
What does the smart money think about Advent Software, Inc. (NASDAQ:ADVS)?
Heading into Q3, a total of 12 of the hedge funds we track were long in this stock, a change of 33% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their holdings considerably.
When using filings from the hedgies we track, John H. Scully’s SPO Advisory Corp had the biggest position in Advent Software, Inc. (NASDAQ:ADVS), worth close to $287.5 million, comprising 3.9% of its total 13F portfolio. Sitting at the No. 2 spot is Peter Rathjens, Bruce Clarke and John Campbell of Arrowstreet Capital, with a $4.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include John Overdeck and David Siegel’s Two Sigma Advisors, Jim Simons’s Renaissance Technologies and D. E. Shaw’s D E Shaw.
Consequently, certain bigger names have been driving this bullishness. SPO Advisory Corp, managed by John H. Scully, created the most valuable position in Advent Software, Inc. (NASDAQ:ADVS). SPO Advisory Corp had 287.5 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $4.1 million investment in the stock during the quarter. The other funds with brand new ADVS positions are John Overdeck and David Siegel’s Two Sigma Advisors, Jim Simons’s Renaissance Technologies, and D. E. Shaw’s D E Shaw.
Insider trading activity in Advent Software, Inc. (NASDAQ:ADVS)
Legal insider trading, particularly when it’s bullish, is at its handiest when the primary stock in question has experienced transactions within the past six months. Over the last 180-day time frame, Advent Software, Inc. (NASDAQ:ADVS) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Advent Software, Inc. (NASDAQ:ADVS). These stocks are Synchronoss Technologies, Inc. (NASDAQ:SNCR), NIC Inc. (NASDAQ:EGOV), RealPage, Inc. (NASDAQ:RP), Progress Software Corporation (NASDAQ:PRGS), and Manhattan Associates, Inc. (NASDAQ:MANH). This group of stocks belong to the application software industry and their market caps are similar to ADVS’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Synchronoss Technologies, Inc. (NASDAQ:SNCR)||13||0||0|
|NIC Inc. (NASDAQ:EGOV)||11||0||0|
|RealPage, Inc. (NASDAQ:RP)||7||0||0|
|Progress Software Corporation (NASDAQ:PRGS)||15||0||0|
|Manhattan Associates, Inc. (NASDAQ:MANH)||17||0||0|
Using the results shown by our tactics, regular investors must always track hedge fund and insider trading sentiment, and Advent Software, Inc. (NASDAQ:ADVS) applies perfectly to this mantra.