5 Technology Stocks Hedge Funds Are Dumping

EPAM Systems Inc. (NYSE:EPAM) was another technology stock that saw a fair bit of selling from top hedge funds during the third quarter. Amongst the funds that we track, 9 funds exited their positions in this stock during the third quarter. Dimensional Fund Advisors sold 243,395 shares of the stock, while David Halpert’s Prince Street Capital Management sold out its whole position by selling 178,400 shares. Some of the other large hedge fund sellers were Adage Capital Fund Partners, Clinton Group and Oak Ridge Investments. The stock performance has been quite woeful, with the stock declining by 10% over the last 6 months. This software services company had reported $914 million in revenues in 2015 with a net income of $26 million. Analysts expect the company to grow its earnings by approximately 10% in the current year.

LinkedIn Corp. (NYSE:LNKD) has seen its stock price rocket up by more than 50% over the last 6 months and currently trades near the $200 mark. The stock price has gone up post the offer to be bought by Microsoft Inc. (NASDAQ:MSFT). In June, Microsoft Inc. (NASDAQ:MSFT) agreed to buy the company for $26.2 billion. With the stock price not expected to appreciate much, hedge funds have been dumping this stock. Advent Capital Management and Pictet Asset Management were the largest hedge fund sellers of the stock. Palisade Capital Management, Man Investments and Nicholas Investment Partners were some of the other large hedge funds which sold off their entire stock of LinkedIn Corp. (NYSE:LNKD). All the 17 analysts covering this stock have rated it as a hold. As per our records, 59 hedge funds held shares worth $4.8 billion during the third quarter.

Citrix Systems, Inc. (NASDAQ:CTXS) one of the largest cloud companies with a market value of $13.76 billion, saw the number of hedge funds long in it decline by 7 to 38 by Septem ber end. The third quarter saw significant selling of this stock by prominent hedge funds. Lombard Odier Asset Management was the biggest seller of this stock, reducing its stake from 9.2% to just 1.7% by selling a whopping 153 million shares. Other major sellers were Oaktree Capital Management, Pictet Asset Management and GLG Partners. The stock has climbed up by 22% in the last one year and sports a P/E multiple of nearly 30x. The stock has been given an average target price of $92 by analysts, which implies a measly 5% upside form the current stock price. Citrix Systems, Inc. (NASDAQ:CTXS) was downgraded to sell from neutral at UBS and Jeffries.

D.E Shaw and Scopia Capital Management sold 1.6 million and 6.85 million shares of Sabre Corp. (NASDAQ:SABR) respectively, during the third quarter. Other large sellers of this stock included Carlson Capital, James Dondero’s Highland Capital Management, Two Sigma Advisers and Janus Capital. The company which is large software solution provider to the travel and tourism industry has seen its price decline by 10% over the last one year. It is currently trading in the middle of its yearly price range and gives a dividend yield of 2%. The company announced that its Chief Executive Tom Klein would resign at the end of the year after completing three years at the helm of the company. 7% of the company’s floating stock is currently sold short on the exchange. It reported $3.3 billion of revenues over the last 12 months with an operating cash flow of $557 million. The number of funds from our records holding sabre Corp (NASDAQ:SABR) declined to 29 from 36, quarter over quarter. The value of their holdings also came down to $1.94 billion from $2.07 billion in the earlier quarter.

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