Is 3D Systems Corporation (NYSE:DDD) a buy here? The smart money is getting more optimistic. The number of bullish hedge fund bets went up by 1 in recent months.
In the financial world, there are plenty of methods market participants can use to track publicly traded companies. A pair 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 elite investment managers can trounce the S&P 500 by a significant margin (see just how much).
Just as important, positive insider trading activity is another way to break down the investments you’re interested in. As the old adage goes: there are lots of stimuli for an upper level exec to downsize shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the useful potential of this tactic if piggybackers understand what to do (learn more here).
Now, it’s important to take a gander at the key action encompassing 3D Systems Corporation (NYSE:DDD).
Hedge fund activity in 3D Systems Corporation (NYSE:DDD)
At year’s end, a total of 8 of the hedge funds we track were bullish in this stock, a change of 14% from the third quarter. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their holdings significantly.
According to our comprehensive database, Chase Coleman and Feroz Dewan’s Tiger Global Management LLC had the biggest position in 3D Systems Corporation (NYSE:DDD), worth close to $55.5 million, accounting for 1% of its total 13F portfolio. Sitting at the No. 2 spot is Criterion Capital, managed by Christopher Lord, which held a $11.4 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Ken Griffin’s Citadel Investment Group, and Daniel S. Och’s OZ Management.
Consequently, specific money managers have been driving this bullishness. Criterion Capital, managed by Christopher Lord, created the most valuable position in 3D Systems Corporation (NYSE:DDD). Criterion Capital had 11.4 million invested in the company at the end of the quarter. Daniel S. Och’s OZ Management also made a $2 million investment in the stock during the quarter. The following funds were also among the new DDD investors: Glenn Russell Dubin’s Highbridge Capital Management, Ryan Frick and Oliver Evans’s Dorsal Capital Management, and Daniel S. Och’s OZ Management.
What do corporate executives and insiders think about 3D Systems Corporation (NYSE:DDD)?
Bullish insider trading is particularly usable when the company in question has seen transactions within the past half-year. Over the latest six-month time period, 3D Systems Corporation (NYSE:DDD) has seen 1 unique insiders buying, and 3 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to 3D Systems Corporation (NYSE:DDD). These stocks are Babcock & Wilcox Co (NYSE:BWC), Crane Co. (NYSE:CR), Lennox International Inc. (NYSE:LII), Sauer-Danfoss Inc. (NYSE:SHS), and The Middleby Corporation (NASDAQ:MIDD). This group of stocks are the members of the diversified machinery industry and their market caps are closest to DDD’s market cap.