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ORBCOMM Inc (ORBC): Hedge Funds Are Bullish and Insiders Are Bearish, What Should You Do?

ORBCOMM INCIs ORBCOMM Inc (NASDAQ:ORBC) a good investment today? Prominent investors are turning bullish. The number of bullish hedge fund bets moved up by 1 lately.

At the moment, there are tons of indicators market participants can use to watch their holdings. A couple of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top fund managers can outclass their index-focused peers by a healthy amount (see just how much).

Equally as integral, bullish insider trading sentiment is a second way to break down the stock market universe. There are a number of reasons for an upper level exec to get rid of shares of his or her company, but only one, very simple reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this method if shareholders understand where to look (learn more here).

Keeping this in mind, it’s important to take a glance at the latest action regarding ORBCOMM Inc (NASDAQ:ORBC).

How are hedge funds trading ORBCOMM Inc (NASDAQ:ORBC)?

At the end of the first quarter, a total of 6 of the hedge funds we track were long in this stock, a change of 20% from the first quarter. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were increasing their stakes considerably.

Of the funds we track, John W. Rogers’s Ariel Investments had the largest position in ORBCOMM Inc (NASDAQ:ORBC), worth close to $4.9 million, accounting for 0.1% of its total 13F portfolio. On Ariel Investments’s heels is Manatuck Hill Partners, managed by Mark Broach, which held a $3 million position; 0.4% of its 13F portfolio is allocated to the company. Other peers that hold long positions include Jim Simons’s Renaissance Technologies, Drew Cupps’s Cupps Capital Management and Ken Griffin’s Citadel Investment Group.

Now, key money managers have jumped into ORBCOMM Inc (NASDAQ:ORBC) headfirst. Cupps Capital Management, managed by Drew Cupps, initiated the most outsized position in ORBCOMM Inc (NASDAQ:ORBC). Cupps Capital Management had 0.2 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0.1 million position during the quarter.

What have insiders been doing with ORBCOMM Inc (NASDAQ:ORBC)?

Insider trading activity, especially when it’s bullish, is at its handiest when the company in question has seen transactions within the past six months. Over the last 180-day time frame, ORBCOMM Inc (NASDAQ:ORBC) has experienced zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

With the returns exhibited by the aforementioned research, everyday investors should always monitor hedge fund and insider trading activity, and ORBCOMM Inc (NASDAQ:ORBC) applies perfectly to this mantra.

Click here to learn why you should track hedge funds

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