In today’s marketplace, there are a multitude of metrics shareholders can use to analyze Mr. Market. A duo of the most under-the-radar 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 best fund managers can beat the market by a significant margin (see just how much).
Just as useful, bullish insider trading sentiment is another way to look at the stock market universe. There are plenty of motivations for an executive to get rid of shares of his or her company, but only one, very simple reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this tactic if “monkeys” know where to look (learn more here).
What’s more, let’s examine the recent info surrounding FactSet Research Systems Inc. (NYSE:FDS).
Hedge fund activity in FactSet Research Systems Inc. (NYSE:FDS)
At the end of the second quarter, a total of 17 of the hedge funds we track were bullish in this stock, a change of 0% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their holdings substantially.
According to our 13F database, David Blood and Al Gore’s Generation Investment Management had the largest position in FactSet Research Systems Inc. (NYSE:FDS), worth close to $93.4 million, comprising 1.8% of its total 13F portfolio. Sitting at the No. 2 spot is Renaissance Technologies, managed by Jim Simons, which held a $45.5 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Ken Griffin’s Citadel Investment Group, Christopher Lord’s Criterion Capital and Chuck Royce’s Royce & Associates.
As FactSet Research Systems Inc. (NYSE:FDS) has faced declining interest from the entirety of the hedge funds we track, it’s easy to see that there exists a select few hedge funds that elected to cut their positions entirely last quarter. Interestingly, Robert Joseph Caruso’s Select Equity Group cut the biggest stake of all the hedgies we track, totaling an estimated $16.9 million in stock. SAC Subsidiary’s fund, Sigma Capital Management, also dropped its stock, about $8.3 million worth. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
How have insiders been trading FactSet Research Systems Inc. (NYSE:FDS)?
Bullish insider trading is most useful when the company in focus has seen transactions within the past six months. Over the last six-month time period, FactSet Research Systems Inc. (NYSE:FDS) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to FactSet Research Systems Inc. (NYSE:FDS). These stocks are IHS Inc. (NYSE:IHS), Broadridge Financial Solutions, Inc. (NYSE:BR), DST Systems, Inc. (NYSE:DST), Morningstar, Inc. (NASDAQ:MORN), and Dun & Bradstreet Corp (NYSE:DNB). All of these stocks are in the information & delivery services industry and their market caps are closest to FDS’s market cap.
