Do Hedge Funds and Insiders Love NetSuite Inc (N)?

What’s a smart NetSuite Inc (NYSE:N) investor to do?

At the moment, there are plenty of indicators market participants can use to track stocks. Some of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top investment managers can outclass the market by a superb margin (see just how much).

Equally as key, optimistic insider trading sentiment is another way to analyze the marketplace. Obviously, there are a variety of reasons for an executive to cut shares of his or her company, but just one, very simple reason why they would buy. Plenty of empirical studies have demonstrated the market-beating potential of this method if piggybackers know where to look (learn more here).

Thus, it’s important to study the recent info surrounding NetSuite Inc (NYSE:N).

What does the smart money think about NetSuite Inc (NYSE:N)?

At the end of the second quarter, a total of 18 of the hedge funds we track were bullish in this stock, a change of 6% from the first quarter. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were increasing their stakes meaningfully.

According to our 13F database, Donald Chiboucis’s Columbus Circle Investors had the largest position in NetSuite Inc (NYSE:N), worth close to $54.1 million, comprising 0.4% of its total 13F portfolio. Coming in second is Cupps Capital Management, managed by Drew Cupps, which held a $43.8 million position; 3.5% of its 13F portfolio is allocated to the stock. Other hedge funds that are bullish include David Stemerman’s Conatus Capital Management, Christopher Lord’s Criterion Capital and Ken Griffin’s Citadel Investment Group.

Now, certain bigger names have jumped into NetSuite Inc (NYSE:N) headfirst. Columbus Circle Investors, managed by Donald Chiboucis, initiated the biggest position in NetSuite Inc (NYSE:N). Columbus Circle Investors had 54.1 million invested in the company at the end of the quarter. Drew Cupps’s Cupps Capital Management also initiated a $43.8 million position during the quarter. The other funds with brand new N positions are David Stemerman’s Conatus Capital Management, Christopher Lord’s Criterion Capital, and Ken Griffin’s Citadel Investment Group.

How are insiders trading NetSuite Inc (NYSE:N)?

Insider buying made by high-level executives is most useful when the company we’re looking at has experienced transactions within the past six months. Over the latest 180-day time period, NetSuite Inc (NYSE:N) has experienced zero unique insiders buying, 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 NetSuite Inc (NYSE:N). These stocks are Jack Henry & Associates, Inc. (NASDAQ:JKHY), Solera Holdings Inc (NYSE:SLH), Total System Services, Inc. (NYSE:TSS), Iron Mountain Incorporated (NYSE:IRM), and Amdocs Limited (NYSE:DOX). This group of stocks are in the business software & services industry and their market caps match N’s market cap.