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

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PRGX Global Inc (NASDAQ:PRGX) was in 7 hedge funds’ portfolio at the end of December. PRGX shareholders have witnessed an increase in enthusiasm from smart money of late. There were 4 hedge funds in our database with PRGX holdings at the end of the previous quarter.


At the moment, there are tons of indicators investors can use to watch publicly traded companies. Two of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite investment managers can beat their index-focused peers by a very impressive amount (see just how much).

Just as beneficial, optimistic insider trading sentiment is another way to break down the financial markets. Obviously, there are many incentives for an insider to drop shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Various academic studies have demonstrated the impressive potential of this strategy if investors understand where to look (learn more here).

With these “truths” under our belt, we’re going to take a glance at the key action surrounding PRGX Global Inc (NASDAQ:PRGX).

What does the smart money think about PRGX Global Inc (NASDAQ:PRGX)?

At the end of the fourth quarter, a total of 7 of the hedge funds we track were long in this stock, a change of 75% from the third quarter. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes significantly.

According to our comprehensive database, Renaissance Technologies, managed by Jim Simons, holds the most valuable position in PRGX Global Inc (NASDAQ:PRGX). Renaissance Technologies has a $7 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second largest stake is held by Anand Parekh of Alyeska Investment Group, with a $1.7 million position; 0.1% of its 13F portfolio is allocated to the company. Other peers that are bullish include Israel Englander’s Millennium Management, Brian Taylor’s Pine River Capital Management and John Overdeck and David Siegel’s Two Sigma Advisors.

As one would reasonably expect, key money managers were leading the bulls’ herd. Alyeska Investment Group, managed by Anand Parekh, established the largest position in PRGX Global Inc (NASDAQ:PRGX). Alyeska Investment Group had 1.7 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $1.6 million position during the quarter. The following funds were also among the new PRGX investors: Brian Taylor’s Pine River Capital Management, Mike Vranos’s Ellington, and Ken Griffin’s Citadel Investment Group.

How have insiders been trading PRGX Global Inc (NASDAQ:PRGX)?

Insider buying is particularly usable when the primary stock in question has seen transactions within the past six months. Over the latest six-month time period, PRGX Global Inc (NASDAQ:PRGX) has seen zero unique insiders buying, and 1 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to PRGX Global Inc (NASDAQ:PRGX). These stocks are Reis Inc (NASDAQ:REIS), PowerSecure International, Inc. (NASDAQ:POWR), Swisher Hygiene, Inc. (NASDAQ:SWSH), Digital Generation Inc (NASDAQ:DGIT), and Limelight Networks, Inc. (NASDAQ:LLNW). All of these stocks are in the business services industry and their market caps are similar to PRGX’s market cap.

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