Is Teradata Corporation (NYSE:TDC) worth your attention right now? The best stock pickers are getting less optimistic. The number of long hedge fund bets were cut by 7 in recent months.
At the moment, there are tons of methods shareholders can use to track stocks. A couple of the most useful are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite fund managers can outclass the market by a superb margin (see just how much).
Equally as beneficial, bullish insider trading sentiment is a second way to parse down the financial markets. There are a number of reasons for a bullish insider to downsize shares of his or her company, but only one, very simple reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the impressive potential of this method if piggybackers know where to look (learn more here).
Keeping this in mind, we’re going to take a gander at the latest action regarding Teradata Corporation (NYSE:TDC).
Hedge fund activity in Teradata Corporation (NYSE:TDC)
At the end of the fourth quarter, a total of 22 of the hedge funds we track were bullish in this stock, a change of -24% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their stakes significantly.
Of the funds we track, Maverick Capital, managed by Lee Ainslie, holds the largest position in Teradata Corporation (NYSE:TDC). Maverick Capital has a $93 million position in the stock, comprising 1.4% of its 13F portfolio. The second largest stake is held by Donald Chiboucis of Columbus Circle Investors, with a $92 million position; the fund has 0.7% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include Jim Simons’s Renaissance Technologies, Glenn Russell Dubin’s Highbridge Capital Management and Panayotis æTakisÆ Sparaggis’s Alkeon Capital Management.
Since Teradata Corporation (NYSE:TDC) has witnessed bearish sentiment from hedge fund managers, it’s easy to see that there was a specific group of hedgies who sold off their positions entirely last quarter. Intriguingly, David Stemerman’s Conatus Capital Management dropped the largest position of the 450+ funds we key on, valued at about $71 million in stock., and Anand Parekh of Alyeska Investment Group was right behind this move, as the fund cut about $12 million worth. These bearish behaviors are important to note, as total hedge fund interest was cut by 7 funds last quarter.
How are insiders trading Teradata Corporation (NYSE:TDC)?
Bullish insider trading is best served when the company we’re looking at has seen transactions within the past half-year. Over the latest half-year time period, Teradata Corporation (NYSE:TDC) has seen zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).
With the returns shown by the aforementioned tactics, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Teradata Corporation (NYSE:TDC) is no exception.
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.