In today’s marketplace, there are a multitude of methods shareholders can use to watch publicly traded companies. A duo of the best 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 elite fund managers can outclass their index-focused peers by a superb amount (see just how much).
Equally as useful, bullish insider trading activity is another way to analyze the financial markets. There are a variety of reasons for an upper level exec to cut shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of empirical studies have demonstrated the valuable potential of this strategy if shareholders know where to look (learn more here).
Keeping this in mind, it’s important to examine the latest info surrounding DST Systems, Inc. (NYSE:DST).
Hedge fund activity in DST Systems, Inc. (NYSE:DST)
At Q2’s end, a total of 25 of the hedge funds we track were long in this stock, a change of 9% from the previous quarter. With hedgies’ sentiment swirling, there exists a select group of key hedge fund managers who were boosting their holdings significantly.
When using filings from the hedgies we track, Greenlight Capital, managed by David Einhorn, holds the most valuable position in DST Systems, Inc. (NYSE:DST). Greenlight Capital has a $108.2 million position in the stock, comprising 2% of its 13F portfolio. The second largest stake is held by Matt Sirovich and Jeremy Mindich of Scopia Capital, with a $56.6 million position; the fund has 1.6% of its 13F portfolio invested in the stock. Other peers that hold long positions include Israel Englander’s Millennium Management, Daniel Gold’s QVT Financial and David Dreman’s Dreman Value Management.
With a general bullishness amongst the titans, particular hedge funds have jumped into DST Systems, Inc. (NYSE:DST) headfirst. Greenlight Capital, managed by David Einhorn, established the biggest position in DST Systems, Inc. (NYSE:DST). Greenlight Capital had 108.2 million invested in the company at the end of the quarter. Matt Sirovich and Jeremy Mindich’s Scopia Capital also initiated a $56.6 million position during the quarter. The following funds were also among the new DST investors: Israel Englander’s Millennium Management, Daniel Gold’s QVT Financial, and David Dreman’s Dreman Value Management.
Insider trading activity in DST Systems, Inc. (NYSE:DST)
Insider buying is particularly usable when the company in focus has seen transactions within the past six months. Over the latest six-month time frame, DST Systems, Inc. (NYSE:DST) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to DST Systems, Inc. (NYSE:DST). These stocks are DigitalGlobe Inc (NYSE:DGI), FactSet Research Systems Inc. (NYSE:FDS), Dun & Bradstreet Corp (NYSE:DNB), Broadridge Financial Solutions, Inc. (NYSE:BR), and Morningstar, Inc. (NASDAQ:MORN). All of these stocks are in the information & delivery services industry and their market caps are similar to DST’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| DigitalGlobe Inc (NYSE:DGI) | 33 | 0 | 0 |
| FactSet Research Systems Inc. (NYSE:FDS) | 17 | 0 | 0 |
| Dun & Bradstreet Corp (NYSE:DNB) | 16 | 0 | 0 |
| Broadridge Financial Solutions, Inc. (NYSE:BR) | 15 | 0 | 0 |
| Morningstar, Inc. (NASDAQ:MORN) | 5 | 0 | 0 |
Using the results explained by the previously mentioned studies, regular investors must always watch hedge fund and insider trading activity, and DST Systems, Inc. (NYSE:DST) is an important part of this process.
