Is Fiserv, Inc. (NASDAQ:FISV) a good investment?
To the average investor, there are tons of metrics shareholders can use to watch stocks. Some of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite fund managers can outperform the S&P 500 by a healthy amount (see just how much).
Equally as necessary, positive insider trading sentiment is a second way to look at the world of equities. There are lots of stimuli for an upper level exec to drop shares of his or her company, but only one, very clear reason why they would initiate a purchase. Various academic studies have demonstrated the impressive potential of this method if investors know where to look (learn more here).
What’s more, it’s important to analyze the latest info about Fiserv, Inc. (NASDAQ:FISV).
Hedge fund activity in Fiserv, Inc. (NASDAQ:FISV)
In preparation for the third quarter, a total of 22 of the hedge funds we track were bullish in this stock, a change of 38% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their holdings meaningfully.
When using filings from the hedgies we track, Eminence Capital, managed by Ricky Sandler, holds the biggest position in Fiserv, Inc. (NASDAQ:FISV). Eminence Capital has a $119.3 million position in the stock, comprising 2.9% of its 13F portfolio. Coming in second is Brave Warrior Capital, managed by Glenn Greenberg, which held a $98.1 million position; 4.5% of its 13F portfolio is allocated to the company. Some other hedge funds that are bullish include John Armitage’s Egerton Capital Limited, Lou Simpson’s SQ Advisors and Greg Poole’s Echo Street Capital Management.
As one would understandably expect, certain money managers were leading the bulls’ herd. Eminence Capital, managed by Ricky Sandler, created the most valuable position in Fiserv, Inc. (NASDAQ:FISV). Eminence Capital had 119.3 million invested in the company at the end of the quarter. Glenn Greenberg’s Brave Warrior Capital also made a $98.1 million investment in the stock during the quarter. The other funds with new positions in the stock are John Armitage’s Egerton Capital Limited, Lou Simpson’s SQ Advisors, and Greg Poole’s Echo Street Capital Management.
How have insiders been trading Fiserv, Inc. (NASDAQ:FISV)?
Insider buying made by high-level executives is best served when the company in focus has seen transactions within the past 180 days. Over the last half-year time frame, Fiserv, Inc. (NASDAQ:FISV) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Fiserv, Inc. (NASDAQ:FISV). These stocks are FleetCor Technologies, Inc. (NYSE:FLT), Alliance Data Systems Corporation (NYSE:ADS), Verisk Analytics, Inc. (NASDAQ:VRSK), Moody’s Corporation (NYSE:MCO), and Fidelity National Information Services (NYSE:FIS). All of these stocks are in the business services industry and their market caps are similar to FISV’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| FleetCor Technologies, Inc. (NYSE:FLT) | 39 | 0 | 0 |
| Alliance Data Systems Corporation (NYSE:ADS) | 26 | 0 | 0 |
| Verisk Analytics, Inc. (NASDAQ:VRSK) | 27 | 0 | 0 |
| Moody’s Corporation (NYSE:MCO) | 35 | 0 | 0 |
| Fidelity National Information Services (NYSE:FIS) | 34 | 0 | 0 |
Using the results demonstrated by Insider Monkey’s strategies, regular investors should always pay attention to hedge fund and insider trading activity, and Fiserv, Inc. (NASDAQ:FISV) is an important part of this process.
