Do Hedge Funds and Insiders Love SPS Commerce, Inc. (SPSC)?

SPS Commerce, Inc. (NASDAQ:SPSC) was in 5 hedge funds’ portfolio at the end of December. SPSC shareholders have witnessed a decrease in activity from the world’s largest hedge funds in recent months. There were 7 hedge funds in our database with SPSC positions at the end of the previous quarter.

SPS Commerce, Inc. (NASDAQ:SPSC)In the financial world, there are many methods shareholders can use to monitor the equity markets. Two of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can outpace their index-focused peers by a solid margin (see just how much).

Just as integral, positive insider trading activity is a second way to break down the financial markets. 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. Various academic studies have demonstrated the useful potential of this strategy if piggybackers understand where to look (learn more here).

Keeping this in mind, let’s take a glance at the key action regarding SPS Commerce, Inc. (NASDAQ:SPSC).

How have hedgies been trading SPS Commerce, Inc. (NASDAQ:SPSC)?

Heading into 2013, a total of 5 of the hedge funds we track held long positions in this stock, a change of -29% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their stakes substantially.

According to our comprehensive database, Driehaus Capital, managed by Richard Driehaus, holds the biggest position in SPS Commerce, Inc. (NASDAQ:SPSC). Driehaus Capital has a $4.6 million position in the stock, comprising 0.2% of its 13F portfolio. The second largest stake is held by Donald Chiboucis of Columbus Circle Investors, with a $2.2 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Gregory Fraser, Rudolph Kluiber, and Timothy Kroch’s GRT Capital Partners, Cliff Asness’s AQR Capital Management and Paul Tudor Jones’s Tudor Investment Corp.

Judging by the fact that SPS Commerce, Inc. (NASDAQ:SPSC) has faced falling interest from the aggregate hedge fund industry, it’s safe to say that there is a sect of hedge funds that decided to sell off their entire stakes in Q4. It’s worth mentioning that Scott Burney’s Bluefin Investment Management said goodbye to the biggest position of all the hedgies we watch, valued at close to $4.2 million in stock.. Louis Navellier’s fund, Navellier & Associates, also cut its stock, about $1.6 million worth. These transactions are important to note, as total hedge fund interest was cut by 2 funds in Q4.

What have insiders been doing with SPS Commerce, Inc. (NASDAQ:SPSC)?

Bullish insider trading is most useful when the company in focus has seen transactions within the past 180 days. Over the latest 180-day time frame, SPS Commerce, Inc. (NASDAQ:SPSC) has experienced zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to SPS Commerce, Inc. (NASDAQ:SPSC). These stocks are SciQuest, Inc. (NASDAQ:SQI), Accelrys, Inc. (NASDAQ:ACCL), BroadSoft Inc (NASDAQ:BSFT), Proofpoint Inc (NASDAQ:PFPT), and Ellie Mae Inc (NYSE:ELLI). This group of stocks are in the application software industry and their market caps match SPSC’s market cap.