Here is What Hedge Funds Think About I.D. Systems, Inc. (IDSY)

I.D. Systems, Inc. (NASDAQ:IDSY) investors should be aware of a decrease in hedge fund interest of late.

In the 21st century investor’s toolkit, there are tons of methods shareholders can use to analyze stocks. A pair of the best are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best hedge fund managers can outperform their index-focused peers by a superb margin (see just how much).

Just as beneficial, bullish insider trading sentiment is a second way to break down the stock market universe. There are many incentives for an upper level exec to cut shares of his or her company, but only one, very simple reason why they would buy. Many empirical studies have demonstrated the market-beating potential of this strategy if piggybackers know what to do (learn more here).

Consequently, let’s take a peek at the key action regarding I.D. Systems, Inc. (NASDAQ:IDSY).

Hedge fund activity in I.D. Systems, Inc. (NASDAQ:IDSY)

Heading into Q2, a total of 5 of the hedge funds we track were long in this stock, a change of -17% from the first quarter. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their holdings considerably.

When looking at the hedgies we track, Diker Management, managed by Mark N. Diker, holds the largest position in I.D. Systems, Inc. (NASDAQ:IDSY). Diker Management has a $4 million position in the stock, comprising 1.1% of its 13F portfolio. On Diker Management’s heels is Stuart Peterson of Artis Capital Management, with a $3.5 million position; the fund has 1.3% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include J. Carlo Cannell’s Cannell Capital, Matthew Drapkin and Steven R. Becker’s Becker Drapkin Management and Jim Simons’s Renaissance Technologies.

Due to the fact that I.D. Systems, Inc. (NASDAQ:IDSY) has faced declining sentiment from the smart money, it’s easy to see that there is a sect of funds who sold off their positions entirely in Q1. It’s worth mentioning that Jon Bauer’s Contrarian Capital said goodbye to the largest stake of all the hedgies we key on, worth an estimated $0.4 million in stock. These moves are interesting, as aggregate hedge fund interest was cut by 1 funds in Q1.

What do corporate executives and insiders think about I.D. Systems, Inc. (NASDAQ:IDSY)?

Insider trading activity, especially when it’s bullish, is particularly usable when the primary stock in question has seen transactions within the past six months. Over the latest 180-day time frame, I.D. Systems, Inc. (NASDAQ:IDSY) has seen zero 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 I.D. Systems, Inc. (NASDAQ:IDSY). These stocks are ClearOne Incoprorated (NASDAQ:CLRO), Frequency Electronics, Inc. (NASDAQ:FEIM), DragonWave, Inc.(USA) (NASDAQ:DRWI), Iteris Inc (NYSEAMEX:ITI), and Clearfield, Inc. (NASDAQ:CLFD). This group of stocks are the members of the communication equipment industry and their market caps resemble IDSY’s market cap.

With the returns demonstrated by our strategies, retail investors must always pay attention to hedge fund and insider trading sentiment, and I.D. Systems, Inc. (NASDAQ:IDSY) applies perfectly to this mantra.

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