Compuware Corporation (NASDAQ:CPWR) investors should be aware of an increase in hedge fund sentiment lately.
In the 21st century investor’s toolkit, there are tons of indicators shareholders can use to track publicly traded companies. Some of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top fund managers can outpace the broader indices by a significant margin (see just how much).
Just as key, positive insider trading activity is another way to break down the world of equities. As the old adage goes: there are a number of reasons for a corporate insider to downsize shares of his or her company, but only one, very obvious reason why they would behave bullishly. Plenty of empirical studies have demonstrated the impressive potential of this method if piggybackers know what to do (learn more here).
With all of this in mind, it’s important to take a gander at the key action regarding Compuware Corporation (NASDAQ:CPWR).
How have hedgies been trading Compuware Corporation (NASDAQ:CPWR)?
At the end of the first quarter, a total of 24 of the hedge funds we track were bullish in this stock, a change of 9% from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their holdings considerably.
According to our comprehensive database, Elliott Management, managed by Paul Singer, holds the biggest position in Compuware Corporation (NASDAQ:CPWR). Elliott Management has a $232.7 million position in the stock, comprising 4.9% of its 13F portfolio. The second largest stake is held by Jeffrey Smith of Starboard Value LP, with a $99.8 million position; the fund has 9.1% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Jonathon Jacobson’s Highfields Capital Management, John Osterweis’s Osterweis Capital Management and Steven Cohen’s SAC Capital Advisors.
With a general bullishness amongst the heavyweights, key money managers were leading the bulls’ herd. Highland Capital Management, managed by James Dondero, created the biggest position in Compuware Corporation (NASDAQ:CPWR). Highland Capital Management had 12.3 million invested in the company at the end of the quarter. SAC Subsidiary’s Sigma Capital Management also initiated a $7.3 million position during the quarter. The other funds with brand new CPWR positions are Clint Carlson’s Carlson Capital, John A. Levin’s Levin Capital Strategies, and SAC Subsidiary’s CR Intrinsic Investors.
How are insiders trading Compuware Corporation (NASDAQ:CPWR)?
Insider buying is particularly usable when the company in focus has seen transactions within the past six months. Over the last half-year time frame, Compuware Corporation (NASDAQ:CPWR) has experienced zero unique insiders buying, 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 Compuware Corporation (NASDAQ:CPWR). These stocks are Fortinet Inc (NASDAQ:FTNT), CommVault Systems, Inc. (NASDAQ:CVLT), Diebold Incorporated (NYSE:DBD), MICROS Systems, Inc. (NASDAQ:MCRS), and Open Text Corporation (USA) (NASDAQ:OTEX). This group of stocks belong to the application software industry and their market caps resemble CPWR’s market cap.