Is Moneygram International Inc (NYSE:MGI) a good investment right now? Prominent investors are taking a bullish view. The number of long hedge fund positions improved by 1 lately.
In the financial world, there are a multitude of gauges investors can use to track their holdings. A pair of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite fund managers can beat their index-focused peers by a significant amount (see just how much).
Just as integral, bullish insider trading activity is another way to break down the stock market universe. As the old adage goes: there are lots of motivations for an insider to get rid of shares of his or her company, but just one, very simple reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the market-beating potential of this tactic if shareholders understand what to do (learn more here).
Now, it’s important to take a glance at the latest action surrounding Moneygram International Inc (NYSE:MGI).
Hedge fund activity in Moneygram International Inc (NYSE:MGI)
At Q1’s end, a total of 10 of the hedge funds we track were bullish in this stock, a change of 11% from the previous quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings substantially.
When looking at the hedgies we track, Blum Capital Partners, managed by Richard Blum, holds the most valuable position in Moneygram International Inc (NYSE:MGI). Blum Capital Partners has a $35.2 million position in the stock, comprising 5.3% of its 13F portfolio. Coming in second is Royce & Associates, managed by Chuck Royce, which held a $26.3 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining hedge funds that hold long positions include John C. Walker’s Stonerise Capital Management, Peter S. Park’s Park West Asset Management and Ken Griffin’s Citadel Investment Group.
As one would reasonably expect, key hedge funds were breaking ground themselves. Park West Asset Management, managed by Peter S. Park, created the most valuable position in Moneygram International Inc (NYSE:MGI). Park West Asset Management had 10.4 million invested in the company at the end of the quarter.
What do corporate executives and insiders think about Moneygram International Inc (NYSE:MGI)?
Insider buying is most useful when the primary stock in question has experienced transactions within the past half-year. Over the latest half-year time period, Moneygram International Inc (NYSE:MGI) has experienced 3 unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Moneygram International Inc (NYSE:MGI). These stocks are Quad/Graphics, Inc. (NYSE:QUAD), TeleTech Holdings, Inc. (NASDAQ:TTEC), NetSpend Holdings Inc (NASDAQ:NTSP), ExlService Holdings, Inc. (NASDAQ:EXLS), and Infoblox Inc (NYSE:BLOX). This group of stocks are the members of the business services industry and their market caps are closest to MGI’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Quad/Graphics, Inc. (NYSE:QUAD) | 11 | 0 | 1 |
| TeleTech Holdings, Inc. (NASDAQ:TTEC) | 11 | 0 | 0 |
| NetSpend Holdings Inc (NASDAQ:NTSP) | 15 | 0 | 1 |
| ExlService Holdings, Inc. (NASDAQ:EXLS) | 7 | 0 | 7 |
| Infoblox Inc (NYSE:BLOX) | 18 | 0 | 8 |
With the returns demonstrated by the aforementioned research, everyday investors must always watch hedge fund and insider trading activity, and Moneygram International Inc (NYSE:MGI) is no exception.
