Globecomm Systems, Inc. (GCOM): Hedge Funds and Insiders Are Bearish, What Should You Do?

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Globecomm Systems, Inc. (NASDAQ:GCOM) investors should be aware of a decrease in hedge fund interest lately.

In today’s marketplace, there are a multitude of metrics shareholders can use to monitor publicly traded companies. A duo of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite fund managers can beat the market by a superb amount (see just how much).

Globecomm Systems, Inc. (NASDAQ:GCOM)

Equally as beneficial, positive insider trading activity is another way to parse down the investments you’re interested in. Just as you’d expect, there are a variety of motivations for an upper level exec to get rid of shares of his or her company, but only one, very simple reason why they would buy. Many empirical studies have demonstrated the impressive potential of this method if piggybackers know what to do (learn more here).

Consequently, let’s take a look at the key action encompassing Globecomm Systems, Inc. (NASDAQ:GCOM).

How are hedge funds trading Globecomm Systems, Inc. (NASDAQ:GCOM)?

At the end of the first quarter, a total of 9 of the hedge funds we track were bullish in this stock, a change of 0% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their stakes substantially.

When looking at the hedgies we track, Matthew Knauer and Mina Faltas’s Nokota Management had the biggest position in Globecomm Systems, Inc. (NASDAQ:GCOM), worth close to $9.3 million, comprising 0.5% of its total 13F portfolio. On Nokota Management’s heels is Philip Hempleman of Ardsley Partners, with a $4.7 million position; 0.7% of its 13F portfolio is allocated to the stock. Remaining hedge funds that are bullish include Chuck Royce’s Royce & Associates, David Moradi’s Anthion Management and Jim Simons’s Renaissance Technologies.

Seeing as Globecomm Systems, Inc. (NASDAQ:GCOM) has experienced declining sentiment from the smart money, we can see that there were a few hedgies that elected to cut their full holdings in Q1. At the top of the heap, Russell Lucas’s Lucas Capital Management said goodbye to the largest position of the “upper crust” of funds we track, valued at close to $0.3 million in stock. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

What have insiders been doing with Globecomm Systems, Inc. (NASDAQ:GCOM)?

Insider buying is best served when the primary stock in question has seen transactions within the past 180 days. Over the last 180-day time frame, Globecomm Systems, Inc. (NASDAQ:GCOM) has experienced zero unique insiders purchasing, and 5 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Globecomm Systems, Inc. (NASDAQ:GCOM). These stocks are Super Micro Computer, Inc. (NASDAQ:SMCI), Silicom Ltd. (NASDAQ:SILC), Black Box Corporation (NASDAQ:BBOX), Digi International Inc. (NASDAQ:DGII), and Extreme Networks, Inc (NASDAQ:EXTR). This group of stocks belong to the networking & communication devices industry and their market caps resemble GCOM’s market cap.

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