Citrix Systems, Inc. (NASDAQ:CTXS) investors: do you watch the smart money?
To the average investor, there are a multitude of metrics investors can use to analyze their holdings. A duo of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite investment managers can outclass the broader indices by a healthy margin (see just how much).
Just as crucial, positive insider trading sentiment is another way to analyze the stock market universe. There are a variety of incentives for an upper level exec to cut shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Many empirical studies have demonstrated the useful potential of this strategy if investors understand what to do (learn more here).
Furthermore, we’re going to discuss the newest info for Citrix Systems, Inc. (NASDAQ:CTXS).
How have hedgies been trading Citrix Systems, Inc. (NASDAQ:CTXS)?
In preparation for the third quarter, a total of 36 of the hedge funds we track were long in this stock, a change of 0% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were increasing their holdings substantially.
When using filings from the hedgies we track, Lee Ainslie’s Maverick Capital had the most valuable position in Citrix Systems, Inc. (NASDAQ:CTXS), worth close to $245.6 million, comprising 3.3% of its total 13F portfolio. Sitting at the No. 2 spot is Partner Fund Management, managed by Christopher Medlock James, which held a $118.4 million position; the fund has 2.5% of its 13F portfolio invested in the stock. Some other hedgies that hold long positions include Glenn Russell Dubin’s Highbridge Capital Management, Bain Capital’s Brookside Capital and David Blood and Al Gore’s Generation Investment Management.
Since Citrix Systems, Inc. (NASDAQ:CTXS) has experienced dropping sentiment from the smart money’s best and brightest, logic holds that there exists a select few hedge funds who sold off their full holdings in Q1. At the top of the heap, Josh Resnick’s Jericho Capital Asset Management dropped the largest stake of all the hedgies we monitor, comprising an estimated $24 million in stock. Mark Kingdon’s fund, Kingdon Capital, also said goodbye to its stock, about $19.8 million worth. These moves are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
How have insiders been trading Citrix Systems, Inc. (NASDAQ:CTXS)?
Insider buying made by high-level executives is most useful when the primary stock in question has seen transactions within the past 180 days. Over the latest half-year time period, Citrix Systems, Inc. (NASDAQ:CTXS) has experienced zero unique insiders purchasing, and 8 insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to Citrix Systems, Inc. (NASDAQ:CTXS). These stocks are Automatic Data Processing (NASDAQ:ADP), NetSuite Inc (NYSE:N), Amdocs Limited (NYSE:DOX), Iron Mountain Incorporated (NYSE:IRM), and Cognizant Technology Solutions Corp (NASDAQ:CTSH). This group of stocks belong to the business software & services industry and their market caps are closest to CTXS’s market cap.