Should You Avoid Forrester Research, Inc. (FORR)?

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Forrester Research, Inc. (NASDAQ:FORR) was in 11 hedge funds’ portfolio at the end of March. FORR has seen a decrease in hedge fund interest lately. There were 12 hedge funds in our database with FORR holdings at the end of the previous quarter.

Forrester Research, Inc. (NASDAQ:FORR)To the average investor, there are a multitude of metrics shareholders can use to analyze the equity markets. Some of the most useful are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top money managers can outclass the market by a superb margin (see just how much).

Just as important, bullish insider trading sentiment is a second way to parse down the world of equities. Obviously, there are a number of motivations for a bullish insider to downsize shares of his or her company, but only one, very simple reason why they would behave bullishly. Plenty of empirical studies have demonstrated the impressive potential of this method if “monkeys” know where to look (learn more here).

With all of this in mind, it’s important to take a glance at the key action regarding Forrester Research, Inc. (NASDAQ:FORR).

Hedge fund activity in Forrester Research, Inc. (NASDAQ:FORR)

Heading into Q2, a total of 11 of the hedge funds we track were bullish in this stock, a change of -8% from the first quarter. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their holdings significantly.

Of the funds we track, P2 Capital Partners, managed by Claus Moller, holds the most valuable position in Forrester Research, Inc. (NASDAQ:FORR). P2 Capital Partners has a $56.9 million position in the stock, comprising 9.7% of its 13F portfolio. Sitting at the No. 2 spot is Royce & Associates, managed by Chuck Royce, which held a $27.3 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining hedge funds that hold long positions include Jim Simons’s Renaissance Technologies, John Overdeck and David Siegel’s Two Sigma Advisors and Jason F. Harris’s Kendall Square Capital.

Judging by the fact that Forrester Research, Inc. (NASDAQ:FORR) has experienced bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there exists a select few hedgies that decided to sell off their entire stakes in Q1. At the top of the heap, Paul Tudor Jones’s Tudor Investment Corp dropped the biggest stake of all the hedgies we track, valued at about $0.4 million in stock., and Ken Griffin of Citadel Investment Group was right behind this move, as the fund dumped about $0.4 million worth. These bearish behaviors are interesting, as total hedge fund interest fell by 1 funds in Q1.

Insider trading activity in Forrester Research, Inc. (NASDAQ:FORR)

Insider trading activity, especially when it’s bullish, is most useful when the company in question has seen transactions within the past 180 days. Over the latest six-month time frame, Forrester Research, Inc. (NASDAQ:FORR) has seen zero unique insiders buying, and 3 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Forrester Research, Inc. (NASDAQ:FORR). These stocks are Qiagen NV (NASDAQ:QGEN), National Technical Systems, Inc. (NASDAQ:NTSC), Myriad Genetics, Inc. (NASDAQ:MYGN), Acacia Research Corporation (NASDAQ:ACTG), and National Research Corporation (NASDAQ:NRCI). This group of stocks are in the research services industry and their market caps are similar to FORR’s market cap.

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