Should You Buy CIBER, Inc. (CBR)?

CIBER, Inc. (NYSE:CBR) has experienced an increase in support from the world’s most elite money managers in recent months.

In the financial world, there are tons of indicators investors can use to monitor their holdings. A pair of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best fund managers can outpace the broader indices by a solid amount (see just how much).

Equally as key, positive insider trading sentiment is another way to parse down the investments you’re interested in. Just as you’d expect, there are a variety of stimuli for an upper level exec to drop shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of academic studies have demonstrated the useful potential of this tactic if investors understand what to do (learn more here).

Consequently, it’s important to take a gander at the recent action encompassing CIBER, Inc. (NYSE:CBR).

What have hedge funds been doing with CIBER, Inc. (NYSE:CBR)?

In preparation for this quarter, a total of 12 of the hedge funds we track were long in this stock, a change of 50% from the previous quarter. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their holdings meaningfully.

When looking at the hedgies we track, Royce & Associates, managed by Chuck Royce, holds the biggest position in CIBER, Inc. (NYSE:CBR). Royce & Associates has a $9.8 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is D E Shaw, managed by D. E. Shaw, which held a $2.4 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining hedgies that hold long positions include Israel Englander’s Millennium Management, Jim Simons’s Renaissance Technologies and Glenn Russell Dubin’s Highbridge Capital Management.

Now, key money managers were leading the bulls’ herd. Highbridge Capital Management, managed by Glenn Russell Dubin, established the largest position in CIBER, Inc. (NYSE:CBR). Highbridge Capital Management had 0.6 million invested in the company at the end of the quarter. Mike Vranos’s Ellington also initiated a $0.3 million position during the quarter. The other funds with new positions in the stock are Steven Cohen’s SAC Capital Advisors, Neil Chriss’s Hutchin Hill Capital, and Ken Griffin’s Citadel Investment Group.

How are insiders trading CIBER, Inc. (NYSE:CBR)?

Bullish insider trading is at its handiest when the company we’re looking at has seen transactions within the past 180 days. Over the last six-month time period, CIBER, Inc. (NYSE:CBR) has seen zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to CIBER, Inc. (NYSE:CBR). These stocks are 21Vianet Group Inc (NASDAQ:VNET), EPIQ Systems, Inc. (NASDAQ:EPIQ), Greenway Medical Technologies, Inc. (NYSE:GWAY), iSoftStone Holdings Ltd (ADR) (NYSE:ISS), and Computer Task Group, Inc. (NASDAQ:CTGX). This group of stocks belong to the information technology services industry and their market caps resemble CBR’s market cap.

With the results demonstrated by the aforementioned studies, everyday investors must always watch hedge fund and insider trading activity, and CIBER, Inc. (NYSE:CBR) shareholders fit into this picture quite nicely.

Click here to learn why you should track hedge funds