Hedge Funds Are Buying NCR Corporation (NCR)

NCR Corporation (NYSE:NCR) was in 34 hedge funds’ portfolio at the end of the first quarter of 2013. NCR shareholders have witnessed an increase in support from the world’s most elite money managers lately. There were 28 hedge funds in our database with NCR positions at the end of the previous quarter.

In the financial world, there are many gauges investors can use to monitor publicly traded companies. A duo of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top investment managers can outperform the market by a solid amount (see just how much).

Equally as key, optimistic insider trading sentiment is another way to parse down the investments you’re interested in. Obviously, there are many stimuli for an insider to get rid of shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Many empirical studies have demonstrated the impressive potential of this tactic if piggybackers know where to look (learn more here).

Keeping this in mind, let’s take a peek at the latest action surrounding NCR Corporation (NYSE:NCR).

How are hedge funds trading NCR Corporation (NYSE:NCR)?

At Q1’s end, a total of 34 of the hedge funds we track were bullish in this stock, a change of 21% from the previous quarter. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their stakes meaningfully.

When looking at the hedgies we track, Greenlight Capital, managed by David Einhorn, holds the largest position in NCR Corporation (NYSE:NCR). Greenlight Capital has a $258 million position in the stock, comprising 3.9% of its 13F portfolio. On Greenlight Capital’s heels is Cadian Capital, managed by Eric Bannasch, which held a $219.3 million position; 6.1% of its 13F portfolio is allocated to the stock. Remaining hedge funds with similar optimism include Richard McGuire’s Marcato Capital Management, D. E. Shaw’s D E Shaw and Ken Fisher’s Fisher Asset Management.

As one would reasonably expect, key hedge funds have jumped into NCR Corporation (NYSE:NCR) headfirst. Newbrook Capital Advisors, managed by Robert Boucai, created the biggest position in NCR Corporation (NYSE:NCR). Newbrook Capital Advisors had 35 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $19.5 million investment in the stock during the quarter. The other funds with new positions in the stock are Jim Simons’s Renaissance Technologies, John Wu’s Sureview Capital, and Matthew Tewksbury’s Stevens Capital Management.

Insider trading activity in NCR Corporation (NYSE:NCR)

Bullish insider trading is particularly usable when the primary stock in question has seen transactions within the past six months. Over the latest six-month time period, NCR Corporation (NYSE:NCR) has experienced zero unique insiders purchasing, and 8 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to NCR Corporation (NYSE:NCR). These stocks are Computer Sciences Corporation (NYSE:CSC), Rackspace Hosting, Inc. (NYSE:RAX), Syntel, Inc. (NASDAQ:SYNT), Gartner Inc (NYSE:IT), and ServiceNow Inc (NYSE:NOW). This group of stocks belong to the information technology services industry and their market caps are closest to NCR’s market cap.

With the returns shown by our tactics, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and NCR Corporation (NYSE:NCR) is an important part of this process.

Click here to learn why you should track hedge funds