NCR Corporation (NYSE:NCR) was in 27 hedge funds’ portfolio at the end of December. NCR shareholders have witnessed a decrease in hedge fund interest lately. There were 31 hedge funds in our database with NCR holdings at the end of the previous quarter.
At the moment, there are dozens of indicators market participants can use to monitor stocks. Some of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best hedge fund managers can outperform their index-focused peers by a solid margin (see just how much).
Equally as integral, bullish insider trading sentiment is a second way to break down the stock market universe. Just as you’d expect, there are lots of incentives for an insider to cut shares of his or her company, but just one, very clear reason why they would buy. Several empirical studies have demonstrated the impressive potential of this method if “monkeys” know where to look (learn more here).
With these “truths” under our belt, we’re going to take a peek at the latest action regarding NCR Corporation (NYSE:NCR).
How are hedge funds trading NCR Corporation (NYSE:NCR)?
In preparation for this year, a total of 27 of the hedge funds we track were bullish in this stock, a change of -13% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their stakes considerably.
According to our comprehensive database, David Einhorn’s Greenlight Capital had the largest position in NCR Corporation (NYSE:NCR), worth close to $261 million, comprising 4.1% of its total 13F portfolio. The second largest stake is held by Cadian Capital, managed by Eric Bannasch, which held a $165 million position; the fund has 5.4% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Steven Cohen’s SAC Capital Advisors, Daniel S. Och’s OZ Management and Matt Sirovich and Jeremy Mindich’s Scopia Capital.
Due to the fact that NCR Corporation (NYSE:NCR) has experienced declining sentiment from the aggregate hedge fund industry, it’s easy to see that there were a few funds who sold off their full holdings in Q4. At the top of the heap, Daniel S. Och’s OZ Management said goodbye to the largest investment of the 450+ funds we watch, totaling an estimated $26 million in call options. Lee Hobson’s fund, Highside Capital Management, also dumped its stock, about $15 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 4 funds in Q4.
What have insiders been doing with NCR Corporation (NYSE:NCR)?
Insider trading activity, especially when it’s bullish, is most useful when the company in question has experienced transactions within the past six months. Over the last half-year time period, NCR Corporation (NYSE:NCR) has seen zero unique insiders purchasing, and 5 insider sales (see the details of insider trades here).
With the returns demonstrated by our time-tested strategies, retail investors should always keep an eye on hedge fund and insider trading activity, and NCR Corporation (NYSE:NCR) shareholders fit into this picture quite nicely.
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