F5 Networks, Inc. (NASDAQ:FFIV) shareholders have witnessed a decrease in support from the world’s most elite money managers lately.
In the financial world, there are dozens of methods investors can use to watch the equity markets. Two of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top hedge fund managers can outpace the market by a very impressive margin (see just how much).
Just as key, positive insider trading activity is another way to parse down the marketplace. Obviously, there are plenty of incentives for a corporate insider to drop shares of his or her company, but just one, very clear reason why they would buy. Various academic studies have demonstrated the useful potential of this method if shareholders understand what to do (learn more here).
With all of this in mind, it’s important to take a glance at the recent action surrounding F5 Networks, Inc. (NASDAQ:FFIV).
How are hedge funds trading F5 Networks, Inc. (NASDAQ:FFIV)?
At the end of the fourth quarter, a total of 23 of the hedge funds we track held long positions in this stock, a change of -4% from the third quarter. With hedgies’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their holdings considerably.
When looking at the hedgies we track, Maverick Capital, managed by Lee Ainslie, holds the biggest position in F5 Networks, Inc. (NASDAQ:FFIV). Maverick Capital has a $84 million position in the stock, comprising 1.2% of its 13F portfolio. Sitting at the No. 2 spot is Eric Bannasch of Cadian Capital, with a $54 million position; 1.2% of its 13F portfolio is allocated to the stock. Other peers that are bullish include Ryan Frick and Oliver Evans’s Dorsal Capital Management, Jim Simons’s Renaissance Technologies and D. E. Shaw’s D E Shaw.
Because F5 Networks, Inc. (NASDAQ:FFIV) has experienced a declination in interest from hedge fund managers, we can see that there is a sect of hedge funds that decided to sell off their positions entirely at the end of the year. Intriguingly, John Overdeck and David Siegel’s Two Sigma Advisors said goodbye to the biggest stake of the 450+ funds we key on, worth about $6 million in stock., and George Soros of Soros Fund Management was right behind this move, as the fund dropped about $5 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 1 funds at the end of the year.
How are insiders trading F5 Networks, Inc. (NASDAQ:FFIV)?
Insider purchases made by high-level executives is best served when the company in focus has seen transactions within the past 180 days. Over the last 180-day time period, F5 Networks, Inc. (NASDAQ:FFIV) has experienced zero unique insiders purchasing, and 9 insider sales (see the details of insider trades here).
With the results demonstrated by the aforementioned studies, retail investors should always keep an eye on hedge fund and insider trading activity, and F5 Networks, Inc. (NASDAQ:FFIV) is an important part of this process.
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