Morningstar, Inc. (NASDAQ:MORN) was in 8 hedge funds’ portfolio at the end of the fourth quarter of 2012. MORN has seen an increase in enthusiasm from smart money recently. There were 7 hedge funds in our database with MORN positions at the end of the previous quarter.
At the moment, there are many metrics shareholders can use to watch Mr. Market. Two of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best money managers can outclass the broader indices by a significant amount (see just how much).
Equally as important, bullish insider trading activity is a second way to break down the marketplace. As the old adage goes: there are lots of reasons for a bullish insider to get rid of shares of his or her company, but just one, very obvious reason why they would buy. Various empirical studies have demonstrated the impressive potential of this method if investors understand what to do (learn more here).
Consequently, it’s important to take a peek at the latest action regarding Morningstar, Inc. (NASDAQ:MORN).
Hedge fund activity in Morningstar, Inc. (NASDAQ:MORN)
At the end of the fourth quarter, a total of 8 of the hedge funds we track were long in this stock, a change of 14% from the third quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were increasing their stakes considerably.
When looking at the hedgies we track, Royce & Associates, managed by Chuck Royce, holds the most valuable position in Morningstar, Inc. (NASDAQ:MORN). Royce & Associates has a $127.1 million position in the stock, comprising 0.4% of its 13F portfolio. The second largest stake is held by Bares Capital Management, managed by Brian Bares, which held a $10.7 million position; 1.9% of its 13F portfolio is allocated to the company. Some other hedge funds that are bullish include Jim Simons’s Renaissance Technologies, Ken Griffin’s Citadel Investment Group and Israel Englander’s Millennium Management.
Now, key hedge funds were leading the bulls’ herd. Millennium Management, managed by Israel Englander, assembled the biggest position in Morningstar, Inc. (NASDAQ:MORN). Millennium Management had 2.7 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also made a $0.7 million investment in the stock during the quarter.
What have insiders been doing with Morningstar, Inc. (NASDAQ:MORN)?
Insider purchases made by high-level executives is most useful when the primary stock in question has experienced transactions within the past 180 days. Over the latest 180-day time period, Morningstar, Inc. (NASDAQ:MORN) has experienced zero unique insiders buying, and 10 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Morningstar, Inc. (NASDAQ:MORN). These stocks are DigitalGlobe Inc (NYSE:DGI), FactSet Research Systems Inc. (NYSE:FDS), Broadridge Financial Solutions, Inc. (NYSE:BR), Dun & Bradstreet Corp (NYSE:DNB), and DST Systems, Inc. (NYSE:DST). This group of stocks belong to the information & delivery services industry and their market caps are similar to MORN’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|DigitalGlobe Inc (NYSE:DGI)||22||0||3|
|FactSet Research Systems Inc. (NYSE:FDS)||10||0||7|
|Broadridge Financial Solutions, Inc. (NYSE:BR)||17||0||5|
|Dun & Bradstreet Corp (NYSE:DNB)||12||0||5|
|DST Systems, Inc. (NYSE:DST)||20||1||7|
With the returns exhibited by the aforementioned tactics, everyday investors must always watch hedge fund and insider trading activity, and Morningstar, Inc. (NASDAQ:MORN) is an important part of this process.