Is Velti Plc (NASDAQ:VELT) a good investment?
To the average investor, there are dozens of methods shareholders can use to analyze stocks. A pair of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top fund managers can outperform the S&P 500 by a solid amount (see just how much).
Equally as necessary, positive insider trading activity is another way to analyze the stock market universe. There are plenty of stimuli for a bullish insider to get rid of shares of his or her company, but only one, very simple reason why they would behave bullishly. Various empirical studies have demonstrated the useful potential of this tactic if shareholders know where to look (learn more here).
Keeping this in mind, we’re going to examine the latest info about Velti Plc (NASDAQ:VELT).
Hedge fund activity in Velti Plc (NASDAQ:VELT)
At Q2’s end, a total of 9 of the hedge funds we track held long positions in this stock, a change of 13% from the previous quarter. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were upping their stakes significantly.
According to our 13F database, Peter S. Park’s Park West Asset Management had the largest position in Velti Plc (NASDAQ:VELT), worth close to $11.1 million, accounting for 1.3% of its total 13F portfolio. Coming in second is Joseph A. Jolson of Harvest Capital Strategies, with a $5.1 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Jim Simons’s Renaissance Technologies, Anand Parekh’s Alyeska Investment Group and John A. Levin’s Levin Capital Strategies.
Now, certain bigger names have been driving this bullishness. Park West Asset Management, managed by Peter S. Park, assembled the largest position in Velti Plc (NASDAQ:VELT). Park West Asset Management had 11.1 million invested in the company at the end of the quarter. Joseph A. Jolson’s Harvest Capital Strategies also initiated a $5.1 million position during the quarter. The other funds with new positions in the stock are Jim Simons’s Renaissance Technologies, Anand Parekh’s Alyeska Investment Group, and John A. Levin’s Levin Capital Strategies.
What do corporate executives and insiders think about Velti Plc (NASDAQ:VELT)?
Legal insider trading, particularly when it’s bullish, is at its handiest when the company in focus has experienced transactions within the past 180 days. Over the latest half-year time period, Velti Plc (NASDAQ:VELT) has seen 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 Velti Plc (NASDAQ:VELT). These stocks are Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT), Official Payments Holdings Inc (NASDAQ:OPAY), Datawatch Corporation (NASDAQ:DWCH), Callidus Software Inc. (NASDAQ:CALD), and Perion Network Ltd (NASDAQ:PERI). This group of stocks belong to the business software & services industry and their market caps are similar to VELT’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Pactera Technology Intl Ltd (ADR) (NASDAQ:PACT)||10||0||0|
|Official Payments Holdings Inc (NASDAQ:OPAY)||3||0||0|
|Datawatch Corporation (NASDAQ:DWCH)||4||0||0|
|Callidus Software Inc. (NASDAQ:CALD)||14||0||0|
|Perion Network Ltd (NASDAQ:PERI)||7||0||0|
Using the returns shown by the previously mentioned studies, average investors must always pay attention to hedge fund and insider trading activity, and Velti Plc (NASDAQ:VELT) is no exception.