Should Progress Software Corporation (NASDAQ:PRGS) investors track the following data?
In the eyes of many market players, hedge funds are assumed to be useless, outdated financial vehicles of a forgotten age. Although there are In excess of 8,000 hedge funds in operation today, this site aim at the moguls of this club, close to 525 funds. It is widely held that this group has its hands on the lion’s share of the hedge fund industry’s total capital, and by watching their best picks, we’ve spotted a few investment strategies that have historically outstripped the S&P 500. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Equally as necessary, positive insider trading sentiment is a second way to analyze 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 just one, very obvious reason why they would initiate a purchase. Several empirical studies have demonstrated the useful potential of this strategy if shareholders know what to do (learn more here).
Now that that’s out of the way, it’s important to analyze the newest info about Progress Software Corporation (NASDAQ:PRGS).
How are hedge funds trading Progress Software Corporation (NASDAQ:PRGS)?
Heading into Q3, a total of 15 of the hedge funds we track were bullish in this stock, a change of 15% from the first quarter. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their holdings meaningfully.
When using filings from the hedgies we track, Daruma Asset Management, managed by Mariko Gordon, holds the largest position in Progress Software Corporation (NASDAQ:PRGS). Daruma Asset Management has a $56.9 million position in the stock, comprising 2.8% of its 13F portfolio. The second largest stake is held by Jeffrey Smith of Starboard Value LP, with a $48.5 million position; the fund has 3.4% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Martin Whitman’s Third Avenue Management, Amy Minella’s Cardinal Capital and Ken Fisher’s Fisher Asset Management.
Now, specific money managers have been driving this bullishness. Daruma Asset Management, managed by Mariko Gordon, assembled the most valuable position in Progress Software Corporation (NASDAQ:PRGS). Daruma Asset Management had 56.9 million invested in the company at the end of the quarter. Jeffrey Smith’s Starboard Value LP also made a $48.5 million investment in the stock during the quarter. The following funds were also among the new PRGS investors: Martin Whitman’s Third Avenue Management, Amy Minella’s Cardinal Capital, and Ken Fisher’s Fisher Asset Management.
What do corporate executives and insiders think about Progress Software Corporation (NASDAQ:PRGS)?
Legal insider trading, particularly when it’s bullish, is at its handiest when the company we’re looking at has seen transactions within the past half-year. Over the latest half-year time frame, Progress Software Corporation (NASDAQ:PRGS) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Progress Software Corporation (NASDAQ:PRGS). These stocks are RealPage, Inc. (NASDAQ:RP), Manhattan Associates, Inc. (NASDAQ:MANH), Synchronoss Technologies, Inc. (NASDAQ:SNCR), Advent Software, Inc. (NASDAQ:ADVS), and NIC Inc. (NASDAQ:EGOV). All of these stocks are in the application software industry and their market caps are closest to PRGS’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|RealPage, Inc. (NASDAQ:RP)||7||0||0|
|Manhattan Associates, Inc. (NASDAQ:MANH)||17||0||0|
|Synchronoss Technologies, Inc. (NASDAQ:SNCR)||13||0||0|
|Advent Software, Inc. (NASDAQ:ADVS)||12||0||0|
|NIC Inc. (NASDAQ:EGOV)||11||0||0|
Using the returns explained by Insider Monkey’s studies, average investors should always pay attention to hedge fund and insider trading sentiment, and Progress Software Corporation (NASDAQ:PRGS) applies perfectly to this mantra.