Is Global Payments Inc (NYSE:GPN) a buy?
In the financial world, there are a multitude of indicators market participants can use to watch the equity markets. Some of the most underrated 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 hedge fund managers can outclass their index-focused peers by a superb margin (see just how much).
Just as necessary, positive insider trading activity is another way to look at the investments you’re interested in. As the old adage goes: there are a number of reasons for an insider to get rid of shares of his or her company, but only one, very clear reason why they would buy. Several empirical studies have demonstrated the useful potential of this strategy if shareholders know where to look (learn more here).
Thus, we’re going to examine the latest info surrounding Global Payments Inc (NYSE:GPN).
How have hedgies been trading Global Payments Inc (NYSE:GPN)?
Heading into Q3, a total of 25 of the hedge funds we track were long in this stock, a change of 9% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were increasing their stakes meaningfully.
According to our 13F database, Ken Griffin’s Citadel Investment Group had the biggest position in Global Payments Inc (NYSE:GPN), worth close to $59 million, accounting for 0.1% of its total 13F portfolio. The second largest stake is held by Mark Travis of Intrepid Capital Management, with a $28.8 million position; the fund has 5% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Curtis Macnguyen’s Ivory Capital (Investment Mgmt), Jeffrey Tannenbaum’s Fir Tree and Amy Minella’s Cardinal Capital.
Consequently, specific money managers were breaking ground themselves. Citadel Investment Group, managed by Ken Griffin, created the largest position in Global Payments Inc (NYSE:GPN). Citadel Investment Group had 59 million invested in the company at the end of the quarter. Mark Travis’s Intrepid Capital Management also made a $28.8 million investment in the stock during the quarter. The other funds with brand new GPN positions are Curtis Macnguyen’s Ivory Capital (Investment Mgmt), Jeffrey Tannenbaum’s Fir Tree, and Amy Minella’s Cardinal Capital.
What have insiders been doing with Global Payments Inc (NYSE:GPN)?
Insider buying made by high-level executives is best served when the company we’re looking at has experienced transactions within the past six months. Over the latest half-year time period, Global Payments Inc (NYSE:GPN) has seen 1 unique insiders purchasing, and 3 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 Global Payments Inc (NYSE:GPN). These stocks are Cintas Corporation (NASDAQ:CTAS), Vantiv Inc (NYSE:VNTV), WEX Inc (NYSE:WXS), athenahealth, Inc (NASDAQ:ATHN), and Rollins, Inc. (NYSE:ROL). All of these stocks are in the business services industry and their market caps are similar to GPN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Cintas Corporation (NASDAQ:CTAS) | 15 | 0 | 2 |
| Vantiv Inc (NYSE:VNTV) | 14 | 0 | 27 |
| WEX Inc (NYSE:WXS) | 10 | 0 | 12 |
| athenahealth, Inc (NASDAQ:ATHN) | 14 | 0 | 10 |
| Rollins, Inc. (NYSE:ROL) | 13 | 0 | 0 |
Using the results demonstrated by the previously mentioned studies, regular investors must always keep one eye on hedge fund and insider trading activity, and Global Payments Inc (NYSE:GPN) shareholders fit into this picture quite nicely.
