Is WNS (Holdings) Limited (ADR) (NYSE:WNS) a buy right now? The smart money is getting less bullish. The number of bullish hedge fund positions dropped by 1 in recent months.
At the moment, there are tons of methods shareholders can use to monitor stocks. Some of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite hedge fund managers can outperform the broader indices by a very impressive margin (see just how much).
Just as key, positive insider trading activity is another way to break down the marketplace. As the old adage goes: there are a variety of motivations for an executive to drop shares of his or her company, but only one, very simple reason why they would buy. Various empirical studies have demonstrated the impressive potential of this strategy if you know where to look (learn more here).
With all of this in mind, we’re going to take a look at the key action encompassing WNS (Holdings) Limited (ADR) (NYSE:WNS).
What have hedge funds been doing with WNS (Holdings) Limited (ADR) (NYSE:WNS)?
At the end of the fourth quarter, a total of 6 of the hedge funds we track were long in this stock, a change of -14% from the third quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were increasing their stakes significantly.
When looking at the hedgies we track, Alyeska Investment Group, managed by Anand Parekh, holds the biggest position in WNS (Holdings) Limited (ADR) (NYSE:WNS). Alyeska Investment Group has a $3.8 million position in the stock, comprising 0.2% of its 13F portfolio. On Alyeska Investment Group’s heels is Renaissance Technologies, managed by Jim Simons, which held a $0.9 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other peers that hold long positions include Israel Englander’s Millennium Management, John Overdeck and David Siegel’s Two Sigma Advisors and Ken Grossman and Glen Schneider’s SG Capital Management.
Due to the fact that WNS (Holdings) Limited (ADR) (NYSE:WNS) has experienced a declination in interest from hedge fund managers, it’s easy to see that there were a few hedgies that slashed their positions entirely in Q4. Interestingly, Steven Cohen’s SAC Capital Advisors dropped the largest stake of the “upper crust” of funds we watch, totaling close to $0.1 million in stock. These transactions are important to note, as total hedge fund interest fell by 1 funds in Q4.
Insider trading activity in WNS (Holdings) Limited (ADR) (NYSE:WNS)
Insider trading activity, especially when it’s bullish, is particularly usable when the company in focus has experienced transactions within the past 180 days. Over the latest 180-day time period, WNS (Holdings) Limited (ADR) (NYSE:WNS) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to WNS (Holdings) Limited (ADR) (NYSE:WNS). These stocks are Team, Inc. (NYSE:TISI), RPX Corp (NASDAQ:RPXC), InnerWorkings, Inc. (NASDAQ:INWK), Insperity Inc (NYSE:NSP), and LivePerson, Inc. (NASDAQ:LPSN). This group of stocks are in the business services industry and their market caps resemble WNS’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Team, Inc. (NYSE:TISI)||9||1||10|
|RPX Corp (NASDAQ:RPXC)||11||1||10|
|InnerWorkings, Inc. (NASDAQ:INWK)||6||0||1|
|Insperity Inc (NYSE:NSP)||10||0||7|
|LivePerson, Inc. (NASDAQ:LPSN)||8||0||1|
With the results demonstrated by our studies, retail investors should always keep an eye on hedge fund and insider trading sentiment, and WNS (Holdings) Limited (ADR) (NYSE:WNS) applies perfectly to this mantra.