Is Rentrak Corporation (NASDAQ:RENT) an outstanding investment now? The smart money is turning bullish. The number of bullish hedge fund positions advanced by 1 recently.
In today’s marketplace, there are dozens of metrics market participants can use to monitor Mr. Market. A duo of the most useful are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top hedge fund managers can trounce the S&P 500 by a healthy margin (see just how much).
Just as important, positive insider trading sentiment is a second way to break down the investments you’re interested in. As the old adage goes: there are a number of reasons for an insider to get rid of shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several empirical studies have demonstrated the impressive potential of this tactic if piggybackers understand where to look (learn more here).
Consequently, it’s important to take a gander at the latest action surrounding Rentrak Corporation (NASDAQ:RENT).
What have hedge funds been doing with Rentrak Corporation (NASDAQ:RENT)?
At year’s end, a total of 6 of the hedge funds we track were bullish in this stock, a change of 20% from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their holdings substantially.
When looking at the hedgies we track, Jean-Marie Eveillard’s First Eagle Investment Management had the largest position in Rentrak Corporation (NASDAQ:RENT), worth close to $8.4 million, comprising less than 0.1%% of its total 13F portfolio. The second largest stake is held by Chuck Royce of Royce & Associates, with a $7.5 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other peers with similar optimism include Jim Simons’s Renaissance Technologies, Stuart Peterson’s Artis Capital Management and John Murphy’s Alydar Capital.
As industrywide interest jumped, specific money managers have been driving this bullishness. Alydar Capital, managed by John Murphy, created the largest position in Rentrak Corporation (NASDAQ:RENT). Alydar Capital had 0.7 million invested in the company at the end of the quarter.
Insider trading activity in Rentrak Corporation (NASDAQ:RENT)
Bullish insider trading is best served when the company we’re looking at has seen transactions within the past six months. Over the last six-month time period, Rentrak Corporation (NASDAQ:RENT) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Rentrak Corporation (NASDAQ:RENT). These stocks are Regal Entertainment Group (NYSE:RGC), Dreamworks Animation Skg Inc (NASDAQ:DWA), RealD (NYSE:RLD), Reading International, Inc. (NASDAQ:RDI), and Carmike Cinemas, Inc. (NASDAQ:CKEC). This group of stocks are in the movie production, theaters industry and their market caps are similar to RENT’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Regal Entertainment Group (NYSE:RGC)||16||0||0|
|Dreamworks Animation Skg Inc (NASDAQ:DWA)||7||0||4|
|Reading International, Inc. (NASDAQ:RDI)||3||1||1|
|Carmike Cinemas, Inc. (NASDAQ:CKEC)||15||2||0|
With the returns exhibited by the aforementioned time-tested strategies, retail investors must always watch hedge fund and insider trading sentiment, and Rentrak Corporation (NASDAQ:RENT) is no exception.