At the moment, there are dozens of gauges investors can use to monitor stocks. A pair of the most useful 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 best money managers can outperform the S&P 500 by a very impressive amount (see just how much).
Equally as key, bullish insider trading activity is another way to parse down the marketplace. There are many reasons for an upper level exec to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Several empirical studies have demonstrated the valuable potential of this method if investors understand what to do (learn more here).
Keeping this in mind, it’s important to take a look at the key action surrounding Glu Mobile Inc. (NASDAQ:GLUU).
What have hedge funds been doing with Glu Mobile Inc. (NASDAQ:GLUU)?
At year’s end, a total of 7 of the hedge funds we track held long positions in this stock, a change of -36% from the previous quarter. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were upping their holdings considerably.
Since Glu Mobile Inc. (NASDAQ:GLUU) has faced bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there was a specific group of fund managers that elected to cut their full holdings last quarter. Intriguingly, Richard Driehaus’s Driehaus Capital sold off the largest stake of the “upper crust” of funds we watch, totaling about $6.6 million in stock., and Israel Englander of Millennium Management was right behind this move, as the fund sold off about $1 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 4 funds last quarter.
What do corporate executives and insiders think about Glu Mobile Inc. (NASDAQ:GLUU)?
Insider buying is most useful when the company in focus has seen transactions within the past 180 days. Over the latest six-month time frame, Glu Mobile Inc. (NASDAQ:GLUU) has experienced 4 unique insiders buying, and 1 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Glu Mobile Inc. (NASDAQ:GLUU). These stocks are The9 Limited (ADR) (NASDAQ:NCTY), Perfect World Co., Ltd. (ADR) (NASDAQ:PWRD), Rosetta Stone Inc (NYSE:RST), KongZhong Corporation (ADR) (NASDAQ:KONG), and Avid Technology, Inc. (NASDAQ:AVID). This group of stocks are in the multimedia & graphics software industry and their market caps are similar to GLUU’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| The9 Limited (ADR) (NASDAQ:NCTY) | 2 | 0 | 0 |
| Perfect World Co., Ltd. (ADR) (NASDAQ:PWRD) | 6 | 0 | 0 |
| Rosetta Stone Inc (NYSE:RST) | 5 | 1 | 5 |
| KongZhong Corporation (ADR) (NASDAQ:KONG) | 3 | 0 | 0 |
| Avid Technology, Inc. (NASDAQ:AVID) | 12 | 1 | 0 |
With the returns shown by our studies, retail investors must always pay attention to hedge fund and insider trading sentiment, and Glu Mobile Inc. (NASDAQ:GLUU) shareholders fit into this picture quite nicely.
