Is it smart to be bullish on HealthStream, Inc. (NASDAQ:HSTM)?
In the 21st century investor’s toolkit, there are tons of indicators market participants can use to analyze their holdings. A couple of the most useful are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best fund managers can outclass the broader indices by a very impressive amount (see just how much).
Just as crucial, optimistic insider trading sentiment is another way to look at the financial markets. As the old adage goes: there are a variety of motivations for a bullish insider to cut shares of his or her company, but just one, very clear reason why they would behave bullishly. Various empirical studies have demonstrated the impressive potential of this strategy if you understand where to look (learn more here).
Now that that’s out of the way, let’s study the latest info about HealthStream, Inc. (NASDAQ:HSTM).
What does the smart money think about HealthStream, Inc. (NASDAQ:HSTM)?
In preparation for the third quarter, a total of 11 of the hedge funds we track were long in this stock, a change of 10% from one quarter earlier. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their stakes significantly.
Out of the hedge funds we follow, Archon Capital Management, managed by Constantinos J. Christofilis, holds the biggest position in HealthStream, Inc. (NASDAQ:HSTM). Archon Capital Management has a $15.6 million position in the stock, comprising 7.1% of its 13F portfolio. Sitting at the No. 2 spot is Richard Driehaus of Driehaus Capital, with a $4.9 million position; 0.2% of its 13F portfolio is allocated to the company. Remaining hedge funds that hold long positions include Jim Simons’s Renaissance Technologies, Chuck Royce’s Royce & Associates and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.
Now, specific money managers were breaking ground themselves. Archon Capital Management, managed by Constantinos J. Christofilis, created the biggest position in HealthStream, Inc. (NASDAQ:HSTM). Archon Capital Management had 15.6 million invested in the company at the end of the quarter. Richard Driehaus’s Driehaus Capital also made a $4.9 million investment in the stock during the quarter. The other funds with brand new HSTM positions are Jim Simons’s Renaissance Technologies, Chuck Royce’s Royce & Associates, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.
Insider trading activity in HealthStream, Inc. (NASDAQ:HSTM)
Insider buying made by high-level executives is best served when the company we’re looking at has experienced transactions within the past half-year. Over the latest six-month time frame, HealthStream, Inc. (NASDAQ:HSTM) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to HealthStream, Inc. (NASDAQ:HSTM). These stocks are Bitauto Hldg Ltd (ADR) (NYSE:BITA), Web.com Group Inc (NASDAQ:WWWW), Move Inc. (NASDAQ:MOVE), SouFun Holdings Limited (ADR) (NYSE:SFUN), and Blucora Inc (NASDAQ:BCOR). This group of stocks are the members of the internet information providers industry and their market caps are similar to HSTM’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Bitauto Hldg Ltd (ADR) (NYSE:BITA) | 4 | 0 | 0 |
| Web.com Group Inc (NASDAQ:WWWW) | 11 | 0 | 0 |
| Move Inc. (NASDAQ:MOVE) | 20 | 0 | 0 |
| SouFun Holdings Limited (ADR) (NYSE:SFUN) | 11 | 0 | 0 |
| Blucora Inc (NASDAQ:BCOR) | 24 | 0 | 0 |
Using the returns explained by Insider Monkey’s studies, regular investors must always watch hedge fund and insider trading activity, and HealthStream, Inc. (NASDAQ:HSTM) shareholders fit into this picture quite nicely.
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HealthStream, Inc. (HSTM): Are Hedge Funds Right About This Stock?
