Is it smart to be bullish on Limelight Networks, Inc. (NASDAQ:LLNW)?
In today’s marketplace, there are a multitude of methods market participants can use to monitor their holdings. A duo 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 top picks of the top hedge fund managers can beat the broader indices by a superb amount (see just how much).
Equally as useful, positive insider trading activity is a second way to analyze the financial markets. Just as you’d expect, there are many stimuli for an insider to get rid of shares of his or her company, but only one, very simple reason why they would behave bullishly. Several academic studies have demonstrated the market-beating potential of this strategy if investors know what to do (learn more here).
Keeping this in mind, we’re going to examine the latest info about Limelight Networks, Inc. (NASDAQ:LLNW).
How are hedge funds trading Limelight Networks, Inc. (NASDAQ:LLNW)?
In preparation for the third quarter, a total of 9 of the hedge funds we track held long positions in this stock, a change of 80% from the first quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were boosting their holdings significantly.
When using filings from the hedgies we track, AQR Capital Management, managed by Cliff Asness, holds the biggest position in Limelight Networks, Inc. (NASDAQ:LLNW). AQR Capital Management has a $2.3 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On AQR Capital Management’s heels is Ian P. Murray of Lanexa Global Management, with a $1 million position; 1.3% of its 13F portfolio is allocated to the stock. Remaining hedgies that are bullish include D. E. Shaw’s D E Shaw, Israel Englander’s Millennium Management and John Overdeck and David Siegel’s Two Sigma Advisors.
Now, particular hedge funds have been driving this bullishness. AQR Capital Management, managed by Cliff Asness, created the biggest position in Limelight Networks, Inc. (NASDAQ:LLNW). AQR Capital Management had 2.3 million invested in the company at the end of the quarter. Ian P. Murray’s Lanexa Global Management also initiated a $1 million position during the quarter. The other funds with brand new LLNW positions are D. E. Shaw’s D E Shaw, Israel Englander’s Millennium Management, and John Overdeck and David Siegel’s Two Sigma Advisors.
What have insiders been doing with Limelight Networks, Inc. (NASDAQ:LLNW)?
Bullish insider trading is at its handiest when the company we’re looking at has experienced transactions within the past half-year. Over the latest half-year time frame, Limelight Networks, Inc. (NASDAQ:LLNW) has experienced zero unique insiders purchasing, 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 Limelight Networks, Inc. (NASDAQ:LLNW). These stocks are Reis Inc (NASDAQ:REIS), PowerSecure International, Inc. (NASDAQ:POWR), Digital Generation Inc (NASDAQ:DGIT), Swisher Hygiene, Inc. (NASDAQ:SWSH), and PRGX Global Inc (NASDAQ:PRGX). This group of stocks are in the business services industry and their market caps are similar to LLNW’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Reis Inc (NASDAQ:REIS) | 4 | 0 | 0 |
| PowerSecure International, Inc. (NASDAQ:POWR) | 14 | 0 | 0 |
| Digital Generation Inc (NASDAQ:DGIT) | 11 | 0 | 0 |
| Swisher Hygiene, Inc. (NASDAQ:SWSH) | 5 | 0 | 0 |
| PRGX Global Inc (NASDAQ:PRGX) | 8 | 0 | 0 |
Using the returns shown by the previously mentioned analyses, regular investors must always track hedge fund and insider trading activity, and Limelight Networks, Inc. (NASDAQ:LLNW) is an important part of this process.
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Limelight Networks, Inc. (LLNW): Insiders Are Buying, Should You?
