Is Yahoo! Inc. (NASDAQ:YHOO) a healthy stock for your portfolio? Investors who are in the know are getting less bullish. The number of long hedge fund positions dropped by 2 in recent months. We should take note of this, because Yahoo’s first quarter profit was $0.38 per share–14 cents above analysts’ estimates. Revenue was also essentially flat year-over-year. Let’s see what the smartest investors think.
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Consequently, it’s important to take a peek at the latest action regarding Yahoo! Inc. (NASDAQ:YHOO).
What have hedge funds been doing with Yahoo! Inc. (NASDAQ:YHOO)?
At year’s end, a total of 60 of the hedge funds we track held long positions in this stock, a change of -3% from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of notable hedge fund managers who were upping their holdings significantly.
According to our comprehensive database, Dan Loeb’s Third Point had the most valuable position in Yahoo! Inc. (NASDAQ:YHOO), worth close to $1.4527 billion, comprising 26.6% of its total 13F portfolio. The second largest stake is held by Tiger Global Management LLC, managed by Chase Coleman and Feroz Dewan, which held a $278.6 million position; 5.2% of its 13F portfolio is allocated to the stock. Some other peers that hold long positions include D. E. Shaw’s D E Shaw, and Jeffrey Tannenbaum’s Fir Tree.
Since Yahoo! Inc. (NASDAQ:YHOO) has witnessed a declination in interest from the aggregate hedge fund industry, we can see that there was a specific group of funds that elected to cut their entire stakes in Q4. At the top of the heap, Curtis Macnguyen’s Ivory Capital (Investment Mgmt) dropped the largest stake of all the hedgies we watch, totaling close to $120.6 million in call options, and Michael A. Price and Amos Meron of Empyrean Capital Partners was right behind this move, as the fund dropped about $99.8 million worth. These moves are interesting, as aggregate hedge fund interest fell by 2 funds in Q4.
How have insiders been trading Yahoo! Inc. (NASDAQ:YHOO)?
Bullish insider trading is at its handiest when the company in focus has experienced transactions within the past half-year. Over the latest 180-day time period, Yahoo! Inc. (NASDAQ:YHOO) has experienced zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Yahoo! Inc. (NASDAQ:YHOO). These stocks are Tripadvisor Inc (NASDAQ:TRIP), Yandex NV (NASDAQ:YNDX), Facebook Inc (NASDAQ:FB), LinkedIn Corp (NYSE:LNKD), and Baidu.com, Inc. (ADR) (NASDAQ:BIDU). This group of stocks belong to the internet information providers industry and their market caps match YHOO’s market cap.