Is it smart to be bullish on Quality Systems, Inc. (NASDAQ:QSII)?
In today’s marketplace, there are tons of indicators market participants can use to watch stocks. Two of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best hedge fund managers can trounce the S&P 500 by a very impressive margin (see just how much).
Equally as key, bullish insider trading activity is a second way to analyze the world of equities. There are lots of reasons for a bullish insider to get rid of shares of his or her company, but only one, very obvious reason why they would buy. Various academic studies have demonstrated the impressive potential of this method if “monkeys” understand where to look (learn more here).
What’s more, let’s discuss the newest info about Quality Systems, Inc. (NASDAQ:QSII).
How are hedge funds trading Quality Systems, Inc. (NASDAQ:QSII)?
In preparation for the third quarter, a total of 11 of the hedge funds we track were bullish in this stock, a change of 10% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their holdings significantly.
Out of the hedge funds we follow, Jacob Gottlieb’s Visium Asset Management had the biggest position in Quality Systems, Inc. (NASDAQ:QSII), worth close to $6.9 million, comprising 0.2% of its total 13F portfolio. The second largest stake is held by CR Intrinsic Investors, managed by SAC Subsidiary, which held a $6.5 million position; 0.2% of its 13F portfolio is allocated to the stock. Remaining hedge funds with similar optimism include Steven Cohen’s SAC Capital Advisors, Ken Griffin’s Citadel Investment Group and Joel Greenblatt’s Gotham Asset Management.
As industrywide interest increased, certain money managers have been driving this bullishness. Visium Asset Management, managed by Jacob Gottlieb, assembled the most outsized position in Quality Systems, Inc. (NASDAQ:QSII). Visium Asset Management had 6.9 million invested in the company at the end of the quarter. SAC Subsidiary’s CR Intrinsic Investors also made a $6.5 million investment in the stock during the quarter. The following funds were also among the new QSII investors: Steven Cohen’s SAC Capital Advisors, Ken Griffin’s Citadel Investment Group, and Joel Greenblatt’s Gotham Asset Management.
What have insiders been doing with Quality Systems, Inc. (NASDAQ:QSII)?
Insider buying is most useful when the primary stock in question has seen transactions within the past half-year. Over the last 180-day time period, Quality Systems, Inc. (NASDAQ:QSII) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Quality Systems, Inc. (NASDAQ:QSII). These stocks are Allscripts Healthcare Solutions Inc (NASDAQ:MDRX), Computer Programs & Systems, Inc. (NASDAQ:CPSI), Medidata Solutions Inc (NASDAQ:MDSO), WebMD Health Corp. (NASDAQ:WBMD), and MedAssets, Inc. (NASDAQ:MDAS). This group of stocks belong to the healthcare information services industry and their market caps resemble QSII’s market cap.