Should You Buy NII Holdings, Inc. (NIHD)?

Is NII Holdings, Inc. (NASDAQ:NIHD) a good investment?

At the moment, there are many methods investors can use to track publicly traded companies. A duo of the most innovative 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 elite investment managers can trounce their index-focused peers by a very impressive amount (see just how much).

Just as useful, optimistic insider trading sentiment is another way to analyze the financial markets. Just as you’d expect, there are many stimuli for an insider to downsize shares of his or her company, but just one, very simple reason why they would behave bullishly. Many empirical studies have demonstrated the useful potential of this tactic if “monkeys” understand where to look (learn more here).

What’s more, we’re going to study the recent info about NII Holdings, Inc. (NASDAQ:NIHD).

How are hedge funds trading NII Holdings, Inc. (NASDAQ:NIHD)?

At the end of the second quarter, a total of 18 of the hedge funds we track held long positions in this stock, a change of 50% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their stakes considerably.

According to our 13F database, Steadfast Capital Management, managed by Robert Pitts, holds the largest position in NII Holdings, Inc. (NASDAQ:NIHD). Steadfast Capital Management has a $42 million position in the stock, comprising 1.2% of its 13F portfolio. Coming in second is Coatue Management, managed by Philippe Laffont, which held a $22.7 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Some other peers that hold long positions include Mario Gabelli’s GAMCO Investors, and Jim Simons’s Renaissance Technologies.

Now, specific money managers were leading the bulls’ herd. Steadfast Capital Management, managed by Robert Pitts, established the most outsized position in NII Holdings, Inc. (NASDAQ:NIHD). Steadfast Capital Management had 42 million invested in the company at the end of the quarter. Philippe Laffont’s Coatue Management also initiated a $22.7 million position during the quarter. The following funds were also among the new NIHD investors: Mario Gabelli’s GAMCO Investors, SAC Subsidiary’s CR Intrinsic Investors, and Jim Simons’s Renaissance Technologies.

What have insiders been doing with NII Holdings, Inc. (NASDAQ:NIHD)?

Insider buying made by high-level executives is best served when the company in focus has experienced transactions within the past 180 days. Over the last half-year time period, NII Holdings, Inc. (NASDAQ:NIHD) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll also review the relationship between both of these indicators in other stocks similar to NII Holdings, Inc. (NASDAQ:NIHD). These stocks are Pendrell Corporation – Class A (NASDAQ:PCO), Ubiquiti Networks Inc (NASDAQ:UBNT), Leap Wireless International, Inc. (NASDAQ:LEAP), Partner Communications Company Ltd (ADR) (NASDAQ:PTNR), and Cellcom Israel Ltd. (NYSE:CEL). This group of stocks belong to the wireless communications industry and their market caps match NIHD’s market cap.

Using the returns explained by the previously mentioned analyses, regular investors should always keep one eye on hedge fund and insider trading activity, and NII Holdings, Inc. (NASDAQ:NIHD) is no exception.

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