Is Globecomm Systems, Inc. (NASDAQ:GCOM) a great investment today? Money managers are in a bearish mood. The number of long hedge fund bets retreated by 1 in recent months.
To the average investor, there are plenty of methods shareholders can use to watch Mr. Market. Some of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top hedge fund managers can beat the market by a superb margin (see just how much).
Equally as key, bullish insider trading activity is another way to parse down the world of equities. Just as you’d expect, there are a number of reasons for an upper level exec to cut shares of his or her company, but just one, very clear reason why they would buy. Several academic studies have demonstrated the valuable potential of this method if piggybackers know what to do (learn more here).
With these “truths” under our belt, we’re going to take a peek at the latest action encompassing Globecomm Systems, Inc. (NASDAQ:GCOM).
What have hedge funds been doing with Globecomm Systems, Inc. (NASDAQ:GCOM)?
Heading into 2013, a total of 7 of the hedge funds we track held long positions in this stock, a change of -13% from one quarter earlier. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were upping their stakes significantly.
Of the funds we track, Chuck Royce’s Royce & Associates had the largest position in Globecomm Systems, Inc. (NASDAQ:GCOM), worth close to $4.1 million, comprising less than 0.1%% of its total 13F portfolio. Coming in second is Renaissance Technologies, managed by Jim Simons, which held a $2.8 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other peers that hold long positions include Joel Greenblatt’s Gotham Asset Management, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors and John Overdeck and David Siegel’s Two Sigma Advisors.
Due to the fact that Globecomm Systems, Inc. (NASDAQ:GCOM) has experienced a declination in interest from the aggregate hedge fund industry, we can see that there were a few hedge funds that decided to sell off their full holdings last quarter. At the top of the heap, Israel Englander’s Millennium Management cut the biggest stake of the 450+ funds we track, totaling an estimated $0.9 million in stock. These transactions are important to note, as aggregate hedge fund interest fell by 1 funds last quarter.
Insider trading activity in Globecomm Systems, Inc. (NASDAQ:GCOM)
Insider trading activity, especially when it’s bullish, is at its handiest when the company we’re looking at has seen transactions within the past half-year. Over the last half-year time frame, Globecomm Systems, Inc. (NASDAQ:GCOM) has experienced zero unique insiders buying, and 5 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Globecomm Systems, Inc. (NASDAQ:GCOM). These stocks are Super Micro Computer, Inc. (NASDAQ:SMCI), Silicom Ltd. (NASDAQ:SILC), Black Box Corporation (NASDAQ:BBOX), Digi International Inc. (NASDAQ:DGII), and Extreme Networks, Inc (NASDAQ:EXTR). All of these stocks are in the networking & communication devices industry and their market caps are similar to GCOM’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Super Micro Computer, Inc. (NASDAQ:SMCI) | 6 | 0 | 3 |
| Silicom Ltd. (NASDAQ:SILC) | 2 | 0 | 0 |
| Black Box Corporation (NASDAQ:BBOX) | 4 | 0 | 0 |
| Digi International Inc. (NASDAQ:DGII) | 7 | 0 | 1 |
| Extreme Networks, Inc (NASDAQ:EXTR) | 13 | 0 | 3 |
With the returns shown by the aforementioned time-tested strategies, retail investors should always keep an eye on hedge fund and insider trading sentiment, and Globecomm Systems, Inc. (NASDAQ:GCOM) is an important part of this process.
