Is Imation Corp. (NYSE:IMN) a bargain? Prominent investors are getting less bullish. The number of long hedge fund bets stayed the same which is a slightly negative development in our experience
Equally as key, positive insider trading sentiment is a second way to break down the world of equities. Just as you’d expect, there are lots of incentives for a bullish insider to cut shares of his or her company, but only one, very clear reason why they would buy. Plenty of academic studies have demonstrated the market-beating potential of this tactic if you understand where to look (learn more here).
Now, it’s important to take a gander at the key action regarding Imation Corp. (NYSE:IMN).
What does the smart money think about Imation Corp. (NYSE:IMN)?
At year’s end, a total of 11 of the hedge funds we track held long positions in this stock, a change of 0% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their holdings considerably.
Of the funds we track, Gregg J. Powers’s Private Capital Management had the biggest position in Imation Corp. (NYSE:IMN), worth close to $6 million, comprising 0.6% of its total 13F portfolio. The second largest stake is held by Richard Rubin of Hawkeye Capital, with a $6 million position; the fund has 2.9% of its 13F portfolio invested in the stock. Some other peers that are bullish include Ryan Schaper’s Point Lobos Capital, John W. Rogers’s Ariel Investments and D. E. Shaw’s D E Shaw.
Because Imation Corp. (NYSE:IMN) has faced bearish sentiment from the smart money, we can see that there was a specific group of hedge funds that decided to sell off their entire stakes last quarter. Intriguingly, Chuck Royce’s Royce & Associates sold off the biggest position of the 450+ funds we key on, totaling an estimated $0 million in stock., and Peter Algert and Kevin Coldiron of Algert Coldiron Investors was right behind this move, as the fund dropped about $0 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Insider trading activity in Imation Corp. (NYSE:IMN)
Insider purchases made by high-level executives is most useful when the primary stock in question has experienced transactions within the past half-year. Over the last 180-day time frame, Imation Corp. (NYSE:IMN) has experienced zero unique insiders purchasing, 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 Imation Corp. (NYSE:IMN). These stocks are Quantum Corp (NYSE:QTM), Xyratex Ltd. (NASDAQ:XRTX), Datalink Corporation (NASDAQ:DTLK), STEC, Inc. (NASDAQ:STEC), and OCZ Technology Group Inc. (NASDAQ:OCZ). This group of stocks belong to the data storage devices industry and their market caps are similar to IMN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Quantum Corp (NYSE:QTM) | 11 | 1 | 0 |
| Xyratex Ltd. (NASDAQ:XRTX) | 7 | 0 | 0 |
| Datalink Corporation (NASDAQ:DTLK) | 5 | 0 | 3 |
| STEC, Inc. (NASDAQ:STEC) | 15 | 2 | 0 |
| OCZ Technology Group Inc. (NASDAQ:OCZ) | 6 | 0 | 0 |
With the results shown by the aforementioned tactics, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Imation Corp. (NYSE:IMN) applies perfectly to this mantra.
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