Is Syntel, Inc. (NASDAQ:SYNT) a healthy stock for your portfolio? Hedge funds are taking a pessimistic view. The number of bullish hedge fund positions dropped by 1 lately.
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Keeping this in mind, let’s take a glance at the key action encompassing Syntel, Inc. (NASDAQ:SYNT).
What have hedge funds been doing with Syntel, Inc. (NASDAQ:SYNT)?
At year’s end, a total of 8 of the hedge funds we track were long in this stock, a change of -11% from the third quarter. With hedgies’ sentiment swirling, there exists a few notable hedge fund managers who were boosting their holdings considerably.
When looking at the hedgies we track, Renaissance Technologies, managed by Jim Simons, holds the largest position in Syntel, Inc. (NASDAQ:SYNT). Renaissance Technologies has a $21.2 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Royce & Associates, managed by Chuck Royce, which held a $19 million position; 0.1% of its 13F portfolio is allocated to the company. Some other peers that are bullish include Israel Englander’s Millennium Management, Joel Greenblatt’s Gotham Asset Management and Mike Vranos’s Ellington.
Because Syntel, Inc. (NASDAQ:SYNT) has experienced declining sentiment from the smart money, logic holds that there is a sect of money managers who sold off their positions entirely last quarter. Interestingly, Richard Driehaus’s Driehaus Capital sold off the biggest position of the “upper crust” of funds we track, valued at an estimated $3.8 million in stock.. Ken Griffin’s fund, Citadel Investment Group, also dropped its stock, about $0.6 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 1 funds last quarter.
What have insiders been doing with Syntel, Inc. (NASDAQ:SYNT)?
Insider buying is best served when the company in question has seen transactions within the past 180 days. Over the last half-year time frame, Syntel, Inc. (NASDAQ:SYNT) has experienced zero unique insiders buying, and 6 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Syntel, Inc. (NASDAQ:SYNT). These stocks are Rackspace Hosting, Inc. (NYSE:RAX), Gartner Inc (NYSE:IT), Acxiom Corporation (NASDAQ:ACXM), ServiceNow Inc (NYSE:NOW), and NCR Corporation (NYSE:NCR). This group of stocks are in the information technology services industry and their market caps resemble SYNT’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Rackspace Hosting, Inc. (NYSE:RAX) | 13 | 0 | 15 |
| Gartner Inc (NYSE:IT) | 10 | 0 | 8 |
| Acxiom Corporation (NASDAQ:ACXM) | 17 | 1 | 1 |
| ServiceNow Inc (NYSE:NOW) | 16 | 0 | 11 |
| NCR Corporation (NYSE:NCR) | 27 | 0 | 5 |
With the returns demonstrated by our research, everyday investors must always monitor hedge fund and insider trading activity, and Syntel, Inc. (NASDAQ:SYNT) is an important part of this process.
