Is NQ Mobile Inc (ADR) (NYSE:NQ) a bargain? Prominent investors are in an optimistic mood. The number of long hedge fund positions moved up by 2 recently.
In the financial world, there are many metrics shareholders can use to watch their holdings. Some of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best fund managers can trounce their index-focused peers by a very impressive margin (see just how much).
Equally as integral, positive insider trading sentiment is a second way to parse down the financial markets. There are a number of stimuli for a bullish insider to cut shares of his or her company, but only one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the useful potential of this method if shareholders know where to look (learn more here).
Consequently, it’s important to take a peek at the key action regarding NQ Mobile Inc (ADR) (NYSE:NQ).
How are hedge funds trading NQ Mobile Inc (ADR) (NYSE:NQ)?
Heading into 2013, a total of 7 of the hedge funds we track were long in this stock, a change of 40% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes significantly.
Of the funds we track, P.A.W. CAPITAL PARTNERS, managed by Peter A. Wright, holds the most valuable position in NQ Mobile Inc (ADR) (NYSE:NQ). P.A.W. CAPITAL PARTNERS has a $7.5 million position in the stock, comprising 5.9% of its 13F portfolio. On P.A.W. CAPITAL PARTNERS’s heels is Anand Parekh of Alyeska Investment Group, with a $2.4 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include D. E. Shaw’s D E Shaw, Panayotis æTakisÆ Sparaggis’s Alkeon Capital Management and Anthony Giammalva’s Sound Energy Partners.
Consequently, key money managers have jumped into NQ Mobile Inc (ADR) (NYSE:NQ) headfirst. D E Shaw, managed by D. E. Shaw, initiated the largest position in NQ Mobile Inc (ADR) (NYSE:NQ). D E Shaw had 1.3 million invested in the company at the end of the quarter. Anthony Giammalva’s Sound Energy Partners also made a $0.4 million investment in the stock during the quarter.
Insider trading activity in NQ Mobile Inc (ADR) (NYSE:NQ)
Insider purchases made by high-level executives is at its handiest when the company in question has seen transactions within the past half-year. Over the last 180-day time frame, NQ Mobile Inc (ADR) (NYSE:NQ) has seen 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 NQ Mobile Inc (ADR) (NYSE:NQ). These stocks are SeaChange International (NASDAQ:SEAC), LogMeIn Inc (NASDAQ:LOGM), Qualys Inc (NASDAQ:QLYS), Responsys Inc (NASDAQ:MKTG), and Incontact Inc (NASDAQ:SAAS). This group of stocks are in the application software industry and their market caps match NQ’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| SeaChange International (NASDAQ:SEAC) | 16 | 0 | 1 |
| LogMeIn Inc (NASDAQ:LOGM) | 12 | 2 | 1 |
| Qualys Inc (NASDAQ:QLYS) | 5 | 0 | 0 |
| Responsys Inc (NASDAQ:MKTG) | 11 | 1 | 5 |
| Incontact Inc (NASDAQ:SAAS) | 6 | 0 | 4 |
With the results shown by our time-tested strategies, retail investors should always keep an eye on hedge fund and insider trading activity, and NQ Mobile Inc (ADR) (NYSE:NQ) is no exception.
