Is PT Telekomunikasi Indonesia (ADR) (NYSE:TLK) a good investment?
In the financial world, there are dozens of metrics investors can use to monitor their holdings. Some of the most useful are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite money managers can outperform their index-focused peers by a very impressive margin (see just how much).
Just as key, bullish insider trading sentiment is a second way to analyze the stock market universe. Obviously, there are lots of reasons for a corporate insider to cut shares of his or her company, but only one, very obvious reason why they would behave bullishly. Various empirical studies have demonstrated the impressive potential of this method if investors understand where to look (learn more here).
Now that that’s out of the way, we’re going to discuss the recent info surrounding PT Telekomunikasi Indonesia (ADR) (NYSE:TLK).
How are hedge funds trading PT Telekomunikasi Indonesia (ADR) (NYSE:TLK)?
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 hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their stakes substantially.
According to our 13F database, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital had the biggest position in PT Telekomunikasi Indonesia (ADR) (NYSE:TLK), worth close to $45.3 million, accounting for 0.3% of its total 13F portfolio. On Arrowstreet Capital’s heels is AQR Capital Management, managed by Cliff Asness, which held a $17.8 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include Thomas Lenox Kempner’s Davidson Kempner, J. Alan Reid, Jr.’s Forward Management and Jim Simons’s Renaissance Technologies.
As PT Telekomunikasi Indonesia (ADR) (NYSE:TLK) has faced a fall in interest from the top-tier hedge fund industry, it’s safe to say that there was a specific group of fund managers that elected to cut their entire stakes heading into Q2. Intriguingly, D. E. Shaw’s D E Shaw sold off the biggest stake of the “upper crust” of funds we watch, comprising an estimated $1.7 million in stock. Bruce Kovner’s fund, Caxton Associates LP, also said goodbye to its stock, about $0.4 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
How have insiders been trading PT Telekomunikasi Indonesia (ADR) (NYSE:TLK)?
Insider buying made by high-level executives is most useful when the company we’re looking at has experienced transactions within the past 180 days. Over the last half-year time period, PT Telekomunikasi Indonesia (ADR) (NYSE:TLK) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to PT Telekomunikasi Indonesia (ADR) (NYSE:TLK). These stocks are Nippon Telegraph & Telephone Corp (ADR) (NYSE:NTT), China Telecom Corporation Limited (ADR) (NYSE:CHA), Philippine Long Distance Telephone (ADR) (NYSE:PHI), BT Group plc (ADR) (NYSE:BT), and France Telecom SA (ADR) (NYSE:FTE). All of these stocks are in the telecom services – foreign industry and their market caps resemble TLK’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Nippon Telegraph & Telephone Corp (ADR) (NYSE:NTT) | 11 | 0 | 0 |
| China Telecom Corporation Limited (ADR) (NYSE:CHA) | 4 | 0 | 0 |
| Philippine Long Distance Telephone (ADR) (NYSE:PHI) | 9 | 0 | 0 |
| BT Group plc (ADR) (NYSE:BT) | 10 | 0 | 0 |
| France Telecom SA (ADR) (NYSE:FTE) | 0 | 0 |
Using the results explained by the previously mentioned analyses, average investors must always track hedge fund and insider trading sentiment, and PT Telekomunikasi Indonesia (ADR) (NYSE:TLK) is no exception.
