Ebix Inc (NASDAQ:EBIX) has experienced a decrease in hedge fund interest recently.
To the average investor, there are a multitude of metrics market participants can use to track Mr. Market. Some of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite hedge fund managers can beat the broader indices by a significant amount (see just how much).
Just as key, optimistic insider trading sentiment is another way to parse down the financial markets. Obviously, there are a number of reasons for a bullish insider to cut shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the useful potential of this tactic if shareholders know where to look (learn more here).
Now, it’s important to take a look at the latest action surrounding Ebix Inc (NASDAQ:EBIX).
What does the smart money think about Ebix Inc (NASDAQ:EBIX)?
At the end of the first quarter, a total of 7 of the hedge funds we track were bullish in this stock, a change of -36% from the first quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were boosting their stakes significantly.
When looking at the hedgies we track, Chuck Royce’s Royce & Associates had the largest position in Ebix Inc (NASDAQ:EBIX), worth close to $2.2 million, accounting for less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is Hutchin Hill Capital, managed by Neil Chriss, which held a $2.1 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include D. E. Shaw’s D E Shaw, and Mike Vranos’s Ellington.
Seeing as Ebix Inc (NASDAQ:EBIX) has experienced declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there exists a select few hedge funds that decided to sell off their full holdings in Q1. It’s worth mentioning that Israel Englander’s Millennium Management sold off the biggest investment of the “upper crust” of funds we monitor, worth an estimated $2.8 million in stock.. Jim Simons’s fund, Renaissance Technologies, also said goodbye to its stock, about $2.2 million worth. These bearish behaviors are important to note, as total hedge fund interest fell by 4 funds in Q1.
How are insiders trading Ebix Inc (NASDAQ:EBIX)?
Insider trading activity, especially when it’s bullish, is best served when the company in question has experienced transactions within the past six months. Over the last half-year time frame, Ebix Inc (NASDAQ:EBIX) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Ebix Inc (NASDAQ:EBIX). These stocks are Interactive Intelligence Group Inc (NASDAQ:ININ), Tangoe Inc (NASDAQ:TNGO), CSG Systems International, Inc. (NASDAQ:CSGS), Servicesource International Inc (NASDAQ:SREV), and Descartes Systems Group (USA) (NASDAQ:DSGX). This group of stocks are the members of the business software & services industry and their market caps are similar to EBIX’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Interactive Intelligence Group Inc (NASDAQ:ININ)||6||1||8|
|Tangoe Inc (NASDAQ:TNGO)||10||0||2|
|CSG Systems International, Inc. (NASDAQ:CSGS)||16||0||5|
|Servicesource International Inc (NASDAQ:SREV)||11||1||7|
|Descartes Systems Group (USA) (NASDAQ:DSGX)||0||0|
With the results exhibited by Insider Monkey’s research, retail investors must always monitor hedge fund and insider trading sentiment, and Ebix Inc (NASDAQ:EBIX) is no exception.