Hedge Funds Are Selling Perficient, Inc. (PRFT)

Perficient, Inc. (NASDAQ:PRFT) was in 7 hedge funds’ portfolio at the end of December. PRFT has experienced a decrease in activity from the world’s largest hedge funds lately. There were 7 hedge funds in our database with PRFT holdings at the end of the previous quarter.

David Shaw

In the financial world, there are many indicators investors can use to monitor Mr. Market. Some of the most useful are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can outpace the broader indices by a solid margin (see just how much).

Equally as beneficial, optimistic insider trading activity is another way to break down the marketplace. Just as you’d expect, there are many stimuli for a corporate insider to sell shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the market-beating potential of this strategy if shareholders understand where to look (learn more here).

Now, let’s take a gander at the key action surrounding Perficient, Inc. (NASDAQ:PRFT).

How have hedgies been trading Perficient, Inc. (NASDAQ:PRFT)?

Heading into 2013, a total of 7 of the hedge funds we track were long in this stock, a change of 0% from the third quarter. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes significantly.

According to our comprehensive database, Chuck Royce’s Royce & Associates had the most valuable position in Perficient, Inc. (NASDAQ:PRFT), worth close to $5.8 million, accounting for less than 0.1%% of its total 13F portfolio. Coming in second is Two Sigma Advisors, managed by John Overdeck and David Siegel, which held a $0.6 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other peers that are bullish include D. E. Shaw’s D E Shaw, Ken Griffin’s Citadel Investment Group and Joel Greenblatt’s Gotham Asset Management.

Seeing as Perficient, Inc. (NASDAQ:PRFT) has faced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there were a few funds that elected to cut their positions entirely heading into 2013. It’s worth mentioning that Ken Grossman and Glen Schneider’s SG Capital Management sold off the largest stake of the “upper crust” of funds we watch, worth an estimated $2 million in stock.. Israel Englander’s fund, Millennium Management, also cut its stock, about $0.8 million worth. These transactions are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

What do corporate executives and insiders think about Perficient, Inc. (NASDAQ:PRFT)?

Insider buying is best served when the primary stock in question has seen transactions within the past half-year. Over the last 180-day time frame, Perficient, Inc. (NASDAQ:PRFT) has seen 2 unique insiders buying, and 5 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 Perficient, Inc. (NASDAQ:PRFT). These stocks are Ebix Inc (NASDAQ:EBIX), Descartes Systems Group (USA) (NASDAQ:DSGX), Formula Systems (1985) Ltd. (ADR) (NASDAQ:FORTY), Servicesource International Inc (NASDAQ:SREV), and Tangoe Inc (NASDAQ:TNGO). This group of stocks are in the business software & services industry and their market caps are similar to PRFT’s market cap.