Does the smart money love Juniper Networks, Inc. (NYSE:JNPR)?
At the moment, there are a multitude of indicators market participants can use to track publicly traded companies. Two of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top fund managers can beat their index-focused peers by a very impressive amount (see just how much).
Just as crucial, bullish insider trading sentiment is another way to analyze the stock market universe. There are many reasons for an executive to sell shares of his or her company, but only one, very simple reason why they would buy. Several empirical studies have demonstrated the impressive potential of this method if shareholders understand where to look (learn more here).
Keeping this in mind, let’s examine the newest info surrounding Juniper Networks, Inc. (NYSE:JNPR).
What does the smart money think about Juniper Networks, Inc. (NYSE:JNPR)?
In preparation for the third quarter, a total of 22 of the hedge funds we track were bullish in this stock, a change of -21% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were boosting their holdings significantly.
According to our 13F database, Diamond Hill Capital, managed by Ric Dillon, holds the biggest position in Juniper Networks, Inc. (NYSE:JNPR). Diamond Hill Capital has a $98.5 million position in the stock, comprising 1.1% of its 13F portfolio. Sitting at the No. 2 spot is SAC Capital Advisors, managed by Steven Cohen, which held a $37.6 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include D. E. Shaw’s D E Shaw, Daniel Benton’s Andor Capital Management and Philippe Jabre’s Jabre Capital Partners.
As Juniper Networks, Inc. (NYSE:JNPR) has faced a fall in interest from upper-tier hedge fund managers, logic holds that there were a few hedge funds that elected to cut their positions entirely at the end of the second quarter. At the top of the heap, Ray Dalio’s Bridgewater Associates dumped the biggest position of the 450+ funds we watch, comprising about $17.2 million in stock. Peter Rathjens Bruce Clarke and John Campbell’s fund, Arrowstreet Capital, also cut its stock, about $15.2 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 6 funds at the end of the second quarter.
What have insiders been doing with Juniper Networks, Inc. (NYSE:JNPR)?
Bullish insider trading is at its handiest when the company in question has experienced transactions within the past six months. Over the latest six-month time period, Juniper Networks, Inc. (NYSE:JNPR) has experienced zero unique insiders buying, and 3 insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Juniper Networks, Inc. (NYSE:JNPR). These stocks are Cisco Systems, Inc. (NASDAQ:CSCO), Finisar Corporation (NASDAQ:FNSR), Riverbed Technology, Inc. (NASDAQ:RVBD), Aruba Networks, Inc. (NASDAQ:ARUN), and Palo Alto Networks Inc (NYSE:PANW). This group of stocks are the members of the networking & communication devices industry and their market caps are closest to JNPR’s market cap.