IDT Corporation (IDT): Hedge Fund and Insider Sentiment Unchanged, What Should You Do?

Should IDT Corporation (NYSE:IDT) investors track the following data?

In the eyes of many of your peers, hedge funds are seen as delayed, outdated investment vehicles of a forgotten age. Although there are more than 8,000 hedge funds in operation in present day, Insider Monkey looks at the elite of this club, around 525 funds. It is widely held that this group has its hands on the majority of all hedge funds’ total assets, and by monitoring their highest performing picks, we’ve revealed a number of investment strategies that have historically beaten the market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).

Just as necessary, positive insider trading activity is another way to analyze the financial markets. There are a number of motivations for an insider to get rid of shares of his or her company, but just one, very simple reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this tactic if piggybackers understand where to look (learn more here).

Furthermore, it’s important to study the latest info about IDT Corporation (NYSE:IDT).

What have hedge funds been doing with IDT Corporation (NYSE:IDT)?

At Q2’s end, a total of 11 of the hedge funds we track held long positions in this stock, a change of 0% from one quarter earlier. With the smart money’s capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their stakes considerably.

According to our 13F database, Renaissance Technologies, managed by Jim Simons, holds the biggest position in IDT Corporation (NYSE:IDT). Renaissance Technologies has a $16.7 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second largest stake is held by Irving Kahn of Kahn Brothers, with a $12.5 million position; the fund has 1.9% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include Jay Petschek and Steven Major’s Corsair Capital Management, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors and Israel Englander’s Millennium Management.

As IDT Corporation (NYSE:IDT) has faced declining interest from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of hedgies who sold off their positions entirely last quarter. Intriguingly, Zeke Ashton’s Centaur Capital Partners said goodbye to the biggest stake of the 450+ funds we key on, totaling about $1 million in stock, and Whitney Tilson of T2 Partners was right behind this move, as the fund sold off about $0.5 million worth. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

How are insiders trading IDT Corporation (NYSE:IDT)?

Legal insider trading, particularly when it’s bullish, is particularly usable when the company in question has experienced transactions within the past six months. Over the last 180-day time period, IDT Corporation (NYSE:IDT) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also take a look at the relationship between both of these indicators in other stocks similar to IDT Corporation (NYSE:IDT). These stocks are RigNet Inc (NASDAQ:RNET), Cbeyond, Inc. (NASDAQ:CBEY), Hawaiian Telcom HoldCo Inc (NASDAQ:HCOM), ORBCOMM Inc (NASDAQ:ORBC), and Lumos Networks Corp (NASDAQ:LMOS). This group of stocks belong to the diversified communication services industry and their market caps resemble IDT’s market cap.

Using the results shown by Insider Monkey’s research, average investors should always track hedge fund and insider trading activity, and IDT Corporation (NYSE:IDT) applies perfectly to this mantra.

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Recommended reading:

Do Hedge Funds and Insiders Love IDT Corporation (IDT)?

Insider Trading Activity

Hedge Fund Activity