Is Procera Networks, Inc. (NASDAQ:PKT) ready to raly soon? Investors who are in the know are in a pessimistic mood. The number of bullish hedge fund bets went down by 2 recently.
At the moment, there are dozens of indicators investors can use to analyze stocks. A duo of the most useful are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best money managers can outperform the market by a healthy amount (see just how much).
Equally as important, optimistic insider trading activity is another way to break down the world of equities. Obviously, there are a number of motivations for an insider to sell shares of his or her company, but just one, very clear reason why they would initiate a purchase. Various empirical studies have demonstrated the impressive potential of this tactic if investors understand what to do (learn more here).
Now, it’s important to take a glance at the key action encompassing Procera Networks, Inc. (NASDAQ:PKT).
How are hedge funds trading Procera Networks, Inc. (NASDAQ:PKT)?
Heading into 2013, a total of 11 of the hedge funds we track were bullish in this stock, a change of -15% from one quarter earlier. With hedgies’ sentiment swirling, there exists a select group of key hedge fund managers who were increasing their holdings meaningfully.
When looking at the hedgies we track, Columbus Circle Investors, managed by Donald Chiboucis, holds the biggest position in Procera Networks, Inc. (NASDAQ:PKT). Columbus Circle Investors has a $24.1 million position in the stock, comprising 0.2% of its 13F portfolio. On Columbus Circle Investors’s heels is Ardsley Partners, managed by Philip Hempleman, which held a $6.5 million position; 1.3% of its 13F portfolio is allocated to the company. Some other peers with similar optimism include Anand Parekh’s Alyeska Investment Group, Israel Englander’s Millennium Management and Robert B. Gillam’s McKinley Capital Management.
Since Procera Networks, Inc. (NASDAQ:PKT) has witnessed declining sentiment from the smart money, we can see that there lies a certain “tier” of fund managers who sold off their positions entirely at the end of the year. Intriguingly, Drew Cupps’s Cupps Capital Management said goodbye to the biggest position of the “upper crust” of funds we monitor, comprising about $3.8 million in stock., and Dmitry Balyasny of Balyasny Asset Management was right behind this move, as the fund said goodbye to about $1.2 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 2 funds at the end of the year.
How have insiders been trading Procera Networks, Inc. (NASDAQ:PKT)?
Insider buying is at its handiest when the primary stock in question has seen transactions within the past six months. Over the latest six-month time period, Procera Networks, Inc. (NASDAQ:PKT) has seen zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Procera Networks, Inc. (NASDAQ:PKT). These stocks are Callidus Software Inc. (NASDAQ:CALD), Sapiens International Corporation N.V. (NASDAQ:SPNS), Formula Systems (1985) Ltd. (ADR) (NASDAQ:FORTY), and Saba Software, Inc. (NASDAQ:SABA). This group of stocks belong to the business software & services industry and their market caps are closest to PKT’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Callidus Software Inc. (NASDAQ:CALD)||9||0||3|
|Sapiens International Corporation N.V. (NASDAQ:SPNS)||1||0||0|
|Formula Systems (1985) Ltd. (ADR) (NASDAQ:FORTY)||1||0||0|
|Saba Software, Inc. (NASDAQ:SABA)||7||0||0|
With the returns demonstrated by Insider Monkey’s research, everyday investors should always pay attention to hedge fund and insider trading sentiment, and Procera Networks, Inc. (NASDAQ:PKT) is no exception.