Is magicJack VocalTec Ltd (NASDAQ:CALL) undervalued? Prominent investors are turning less bullish. The number of long hedge fund positions fell by 1 in recent months.
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Just as integral, optimistic insider trading activity is a second way to break down the financial markets. Obviously, there are a variety of stimuli for a corporate insider to cut shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this strategy if shareholders know what to do (learn more here).
With all of this in mind, we’re going to take a gander at the key action regarding magicJack VocalTec Ltd (NASDAQ:CALL).
What does the smart money think about magicJack VocalTec Ltd (NASDAQ:CALL)?
At year’s end, a total of 7 of the hedge funds we track were long in this stock, a change of -13% from one quarter earlier. With hedge funds’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings significantly.
Judging by the fact that magicJack VocalTec Ltd (NASDAQ:CALL) has faced declining sentiment from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of fund managers who were dropping their positions entirely in Q4. Interestingly, Guru Ramakrishnan’s Meru Capital dumped the largest investment of all the hedgies we key on, worth close to $3.4 million in stock., and Cliff Asness of AQR Capital Management was right behind this move, as the fund cut about $2.4 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 1 funds in Q4.
How are insiders trading magicJack VocalTec Ltd (NASDAQ:CALL)?
Bullish insider trading is at its handiest when the primary stock in question has seen transactions within the past six months. Over the last half-year time period, magicJack VocalTec Ltd (NASDAQ:CALL) has experienced zero unique insiders buying, and 1 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to magicJack VocalTec Ltd (NASDAQ:CALL). These stocks are Cincinnati Bell Inc. (NYSE:CBB), EarthLink, Inc. (NASDAQ:ELNK), Hickory Tech Corporation (NASDAQ:HTCO), Shenandoah Telecommunications Company (NASDAQ:SHEN), and FairPoint Communications Inc (NASDAQ:FRP). This group of stocks are in the telecom services – domestic industry and their market caps are similar to CALL’s market cap.
