Is DICE HOLDINGS, INC. (NYSE:DHX) a good investment?
In today’s marketplace, there are plenty of indicators market participants can use to monitor the equity markets. A pair of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best hedge fund managers can outclass the market by a very impressive margin (see just how much).
Just as necessary, positive insider trading activity is another way to look at the stock market universe. There are plenty of stimuli for an insider to downsize shares of his or her company, but only one, very obvious reason why they would buy. Many empirical studies have demonstrated the valuable potential of this method if shareholders understand what to do (learn more here).
Keeping this in mind, let’s discuss the newest info about DICE HOLDINGS, INC. (NYSE:DHX).
What have hedge funds been doing with DICE HOLDINGS, INC. (NYSE:DHX)?
At the end of the second quarter, a total of 14 of the hedge funds we track were long in this stock, a change of 56% from the first quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings considerably.
When using filings from the hedgies we track, Blue Harbour Group, managed by Clifton S. Robbins, holds the most valuable position in DICE HOLDINGS, INC. (NYSE:DHX). Blue Harbour Group has a $26.8 million position in the stock, comprising 2% of its 13F portfolio. Coming in second is Alexander Medina Seaver of Stadium Capital Management, with a $6.4 million position; 1.6% of its 13F portfolio is allocated to the company. Some other peers with similar optimism include Scott Sinclair and Laurence Chang’s Cascabel Management, Joel Greenblatt’s Gotham Asset Management and Israel Englander’s Millennium Management.
Consequently, certain bigger names have jumped into DICE HOLDINGS, INC. (NYSE:DHX) headfirst. Blue Harbour Group, managed by Clifton S. Robbins, initiated the most outsized position in DICE HOLDINGS, INC. (NYSE:DHX). Blue Harbour Group had 26.8 million invested in the company at the end of the quarter. Alexander Medina Seaver’s Stadium Capital Management also made a $6.4 million investment in the stock during the quarter. The following funds were also among the new DHX investors: Scott Sinclair and Laurence Chang’s Cascabel Management, Joel Greenblatt’s Gotham Asset Management, and Israel Englander’s Millennium Management.
What do corporate executives and insiders think about DICE HOLDINGS, INC. (NYSE:DHX)?
Insider buying is particularly usable when the company in focus has experienced transactions within the past six months. Over the last six-month time period, DICE HOLDINGS, INC. (NYSE:DHX) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to DICE HOLDINGS, INC. (NYSE:DHX). These stocks are Trueblue Inc (NYSE:TBI), Compass Diversified Holdings (NYSE:CODI), AMN Healthcare Services, Inc. (NYSE:AHS), Kelly Services, Inc. (NASDAQ:KELYA), and Kforce Inc. (NASDAQ:KFRC). All of these stocks are in the staffing & outsourcing services industry and their market caps resemble DHX’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Trueblue Inc (NYSE:TBI)||13||0||0|
|Compass Diversified Holdings (NYSE:CODI)||5||0||0|
|AMN Healthcare Services, Inc. (NYSE:AHS)||18||0||0|
|Kelly Services, Inc. (NASDAQ:KELYA)||8||0||0|
|Kforce Inc. (NASDAQ:KFRC)||6||0||0|
Using the results demonstrated by the previously mentioned analyses, average investors must always pay attention to hedge fund and insider trading activity, and DICE HOLDINGS, INC. (NYSE:DHX) applies perfectly to this mantra.