Is InterNAP Network Services (NASDAQ:INAP) the right investment to pursue these days? Money managers are taking a bearish view. The number of long hedge fund bets dropped by 2 lately.
In the 21st century investor’s toolkit, there are plenty of indicators investors can use to analyze Mr. Market. A pair of the most useful are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite money managers can outclass the broader indices by a superb margin (see just how much).
Just as important, optimistic insider trading sentiment is a second way to break down the marketplace. Just as you’d expect, there are plenty of stimuli for a corporate insider to downsize shares of his or her company, but only one, very simple reason why they would buy. Several empirical studies have demonstrated the valuable potential of this tactic if “monkeys” know what to do (learn more here).
With these “truths” under our belt, let’s take a peek at the recent action encompassing InterNAP Network Services (NASDAQ:INAP).
What have hedge funds been doing with InterNAP Network Services (NASDAQ:INAP)?
At Q1’s end, a total of 6 of the hedge funds we track were bullish in this stock, a change of -25% from the previous quarter. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were increasing their stakes substantially.
According to our comprehensive database, Mario Gabelli’s GAMCO Investors had the largest position in InterNAP Network Services (NASDAQ:INAP), worth close to $57.8 million, comprising 0.4% of its total 13F portfolio. On GAMCO Investors’s heels is Barry Lebovits and Joshua Kuntz of Rivulet Capital, with a $4.4 million position; 3.5% of its 13F portfolio is allocated to the company. Remaining peers that hold long positions include Jim Simons’s Renaissance Technologies, John Overdeck and David Siegel’s Two Sigma Advisors and Ken Griffin’s Citadel Investment Group.
Judging by the fact that InterNAP Network Services (NASDAQ:INAP) has witnessed falling interest from hedge fund managers, it’s safe to say that there lies a certain “tier” of hedge funds that slashed their full holdings at the end of the first quarter. At the top of the heap, Constantinos J. Christofilis’s Archon Capital Management said goodbye to the largest stake of the 450+ funds we monitor, valued at close to $7.1 million in stock., and Bruce Silver of Silver Capital Management LLC was right behind this move, as the fund dumped about $1 million worth. These transactions are interesting, as total hedge fund interest was cut by 2 funds at the end of the first quarter.
Insider trading activity in InterNAP Network Services (NASDAQ:INAP)
Bullish insider trading is particularly usable when the company in question has seen transactions within the past 180 days. Over the latest half-year time period, InterNAP Network Services (NASDAQ:INAP) has seen zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to InterNAP Network Services (NASDAQ:INAP). These stocks are ClickSoftware Technologies Ltd. (NASDAQ:CKSW), QuinStreet Inc (NASDAQ:QNST), Vocus, Inc. (NASDAQ:VOCS), Demand Media Inc (NYSE:DMD), and Digital River, Inc. (NASDAQ:DRIV). All of these stocks are in the internet software & services industry and their market caps are similar to INAP’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|ClickSoftware Technologies Ltd. (NASDAQ:CKSW)||6||0||0|
|QuinStreet Inc (NASDAQ:QNST)||7||0||0|
|Vocus, Inc. (NASDAQ:VOCS)||12||3||4|
|Demand Media Inc (NYSE:DMD)||13||0||3|
|Digital River, Inc. (NASDAQ:DRIV)||12||4||2|
With the results demonstrated by our research, everyday investors must always pay attention to hedge fund and insider trading activity, and InterNAP Network Services (NASDAQ:INAP) is no exception.