Is Martha Stewart Living Omnimedia, Inc. (NYSE:MSO) a bargain? Hedge funds are betting on the stock. The number of bullish hedge fund positions went up by 2 lately.
In today’s marketplace, there are a multitude of metrics investors can use to monitor stocks. A duo of the best are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top fund managers can beat the broader indices by a superb margin (see just how much).
Equally as important, positive insider trading activity is another way to break down the investments you’re interested in. There are many motivations for a corporate insider to drop shares of his or her company, but just one, very obvious reason why they would buy. Many empirical studies have demonstrated the impressive potential of this method if investors understand where to look (learn more here).
With all of this in mind, let’s take a gander at the latest action surrounding Martha Stewart Living Omnimedia, Inc. (NYSE:MSO).
Hedge fund activity in Martha Stewart Living Omnimedia, Inc. (NYSE:MSO)
In preparation for this year, a total of 9 of the hedge funds we track held long positions in this stock, a change of 29% from one quarter earlier. With hedgies’ sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their holdings significantly.
As one would reasonably expect, specific money managers have been driving this bullishness. Courage Capital, managed by Richard C. Patton, created the biggest position in Martha Stewart Living Omnimedia, Inc. (NYSE:MSO). Courage Capital had $1.5 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also initiated a <$1 million position during the quarter.
How are insiders trading Martha Stewart Living Omnimedia, Inc. (NYSE:MSO)?
Bullish insider trading is at its handiest when the company we’re looking at has experienced transactions within the past 180 days. Over the last half-year time frame, Martha Stewart Living Omnimedia, Inc. (NYSE:MSO) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Martha Stewart Living Omnimedia, Inc. (NYSE:MSO). These stocks are Reed Elsevier NV (ADR) (NYSE:ENL), Meredith Corporation (NYSE:MDP), and The Dolan Company (NYSE:DM). All of these stocks are in the publishing – periodicals industry and their market caps resemble MSO’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Reed Elsevier NV (ADR) (NYSE:ENL) | 1 | 0 | 0 |
| Meredith Corporation (NYSE:MDP) | 11 | 0 | 4 |
| The Dolan Company (NYSE:DM) | 10 | 7 | 0 |
With the returns demonstrated by Insider Monkey’s research, retail investors must always pay attention to hedge fund and insider trading activity, and Martha Stewart Living Omnimedia, Inc. (NYSE:MSO) shareholders fit into this picture quite nicely.
