Is NQ Mobile Inc (ADR) (NYSE:NQ) a good investment?
To the average investor, there are tons of methods investors can use to track publicly traded companies. A couple of the most useful are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best investment managers can outperform the S&P 500 by a healthy amount (see just how much).
Equally as key, bullish insider trading sentiment is a second way to look at the investments you’re interested in. There are lots of stimuli for an insider to downsize shares of his or her company, but just one, very obvious reason why they would buy. Various empirical studies have demonstrated the market-beating potential of this method if “monkeys” know where to look (learn more here).
Now that that’s out of the way, we’re going to analyze the recent info surrounding NQ Mobile Inc (ADR) (NYSE:NQ).
What does the smart money think about NQ Mobile Inc (ADR) (NYSE:NQ)?
In preparation for the third quarter, a total of 11 of the hedge funds we track held long positions in this stock, a change of -21% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes substantially.
Since NQ Mobile Inc (ADR) (NYSE:NQ) has faced bearish sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few fund managers who were dropping their positions entirely last quarter. At the top of the heap, Jeffrey Vinik’s Vinik Asset Management said goodbye to the biggest investment of the “upper crust” of funds we monitor, valued at an estimated $1.9 million in call options.. Peter A. Wright’s fund, P.A.W. CAPITAL PARTNERS, also dumped its call options., about $1.9 million worth. These moves are interesting, as aggregate hedge fund interest fell by 3 funds last quarter.
What do corporate executives and insiders think about NQ Mobile Inc (ADR) (NYSE:NQ)?
Insider buying is most useful when the company in question has experienced transactions within the past six months. Over the last 180-day time frame, NQ Mobile Inc (ADR) (NYSE:NQ) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to NQ Mobile Inc (ADR) (NYSE:NQ). These stocks are SeaChange International (NASDAQ:SEAC), LogMeIn Inc (NASDAQ:LOGM), Qualys Inc (NASDAQ:QLYS), Responsys Inc (NASDAQ:MKTG), and Incontact Inc (NASDAQ:SAAS). All of these stocks are in the application software industry and their market caps resemble NQ’s market cap.