In today’s marketplace, there are dozens of metrics investors can use to analyze publicly traded companies. Two of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite money managers can outperform the market by a very impressive amount (see just how much).
Just as key, optimistic insider trading sentiment is a second way to look at the stock market universe. As the old adage goes: there are a number of stimuli for a bullish insider to downsize shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of academic studies have demonstrated the valuable potential of this method if investors understand where to look (learn more here).
Keeping this in mind, let’s study the newest info for Sonus Networks, Inc. (NASDAQ:SONS).
How are hedge funds trading Sonus Networks, Inc. (NASDAQ:SONS)?
At Q2’s end, a total of 15 of the hedge funds we track held long positions in this stock, a change of 36% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their holdings significantly.
According to our 13F database, Scott Fine and Peter Richards’s Empire Capital Management had the biggest position in Sonus Networks, Inc. (NASDAQ:SONS), worth close to $116.2 million, comprising 14% of its total 13F portfolio. The second largest stake is held by Donald Chiboucis of Columbus Circle Investors, with a $14 million position; 0.1% of its 13F portfolio is allocated to the company. Other hedge funds with similar optimism include Steven Cohen’s SAC Capital Advisors, Drew Cupps’s Cupps Capital Management and Jim Simons’s Renaissance Technologies.
Consequently, certain money managers were leading the bulls’ herd. Empire Capital Management, managed by Scott Fine and Peter Richards, created the most valuable position in Sonus Networks, Inc. (NASDAQ:SONS). Empire Capital Management had 116.2 million invested in the company at the end of the quarter. Donald Chiboucis’s Columbus Circle Investors also initiated a $14 million position during the quarter. The other funds with new positions in the stock are Steven Cohen’s SAC Capital Advisors, Drew Cupps’s Cupps Capital Management, and Jim Simons’s Renaissance Technologies.
How have insiders been trading Sonus Networks, Inc. (NASDAQ:SONS)?
Insider buying is most useful when the company in focus has seen transactions within the past six months. Over the last half-year time frame, Sonus Networks, Inc. (NASDAQ:SONS) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Sonus Networks, Inc. (NASDAQ:SONS). These stocks are 8×8, Inc. (NASDAQ:EGHT), Vocera Communications Inc (NYSE:VCRA), Infinera Corp. (NASDAQ:INFN), Harmonic Inc (NASDAQ:HLIT), and Tellabs, Inc. (NASDAQ:TLAB). This group of stocks are in the communication equipment industry and their market caps are closest to SONS’s market cap.