CA, Inc. (NASDAQ:CA): Insiders Are Dumping, Should You?

Is CA, Inc. (NASDAQ:CA) a bargain? Money managers are becoming more confident. The number of bullish hedge fund bets advanced by 1 recently.


In the 21st century investor’s toolkit, there are tons of metrics shareholders can use to analyze stocks. Two of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top hedge fund managers can outperform their index-focused peers by a significant margin (see just how much).

Just as integral, bullish insider trading sentiment is a second way to parse down the investments you’re interested in. Just as you’d expect, there are a variety of stimuli for a corporate insider to drop shares of his or her company, but only one, very clear reason why they would initiate a purchase. Various empirical studies have demonstrated the valuable potential of this method if investors understand what to do (learn more here).

Consequently, it’s important to take a look at the key action regarding CA, Inc. (NASDAQ:CA).

How are hedge funds trading CA, Inc. (NASDAQ:CA)?

In preparation for this year, a total of 25 of the hedge funds we track were bullish in this stock, a change of 4% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their holdings meaningfully.

According to our comprehensive database, Cliff Asness’s AQR Capital Management had the most valuable position in CA, Inc. (NASDAQ:CA), worth close to $58 million, comprising 0.3% of its total 13F portfolio. Sitting at the No. 2 spot is Gregg J. Powers of Private Capital Management, with a $56 million position; 0.9% of its 13F portfolio is allocated to the company. Some other hedgies that hold long positions include John Overdeck and David Siegel’s Two Sigma Advisors, Ray Dalio’s Bridgewater Associates and Paul Tudor Jones’s Tudor Investment Corp.

As aggregate interest increased, key hedge funds were breaking ground themselves. Two Sigma Advisors, managed by John Overdeck and David Siegel, assembled the biggest position in CA, Inc. (NASDAQ:CA). Two Sigma Advisors had 34 million invested in the company at the end of the quarter. Paul Tudor Jones’s Tudor Investment Corp also made a $22 million investment in the stock during the quarter. The other funds with new positions in the stock are Clint Carlson’s Carlson Capital, Glenn Russell Dubin’s Highbridge Capital Management, and Guru Ramakrishnan’s Meru Capital.

What do corporate executives and insiders think about CA, Inc. (NASDAQ:CA)?

Bullish insider trading is best served when the primary stock in question has experienced transactions within the past 180 days. Over the latest six-month time frame, CA, Inc. (NASDAQ:CA) has experienced zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

With the returns shown by our time-tested strategies, everyday investors should always monitor hedge fund and insider trading sentiment, and CA, Inc. (NASDAQ:CA) is no exception.

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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.