Is Sapient Corporation (NASDAQ:SAPE) ready to raly soon? Prominent investors are turning bullish. The number of bullish hedge fund bets increased by 4 lately.
In today’s marketplace, there are plenty of metrics investors can use to track Mr. Market. Some of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite investment managers can beat the broader indices by a superb amount (see just how much).
Just as integral, positive insider trading sentiment is another way to break down the stock market universe. Obviously, there are many reasons for an upper level exec to sell shares of his or her company, but only one, very clear reason why they would buy. Several empirical studies have demonstrated the market-beating potential of this method if you know where to look (learn more here).
Now, it’s important to take a gander at the recent action surrounding Sapient Corporation (NASDAQ:SAPE).
How have hedgies been trading Sapient Corporation (NASDAQ:SAPE)?
In preparation for this year, a total of 16 of the hedge funds we track were long in this stock, a change of 33% from the third quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were increasing their stakes substantially.
When looking at the hedgies we track, Chuck Royce’s Royce & Associates had the biggest position in Sapient Corporation (NASDAQ:SAPE), worth close to $37 million, accounting for 0.1% of its total 13F portfolio. The second largest stake is held by Blue Harbour Group, managed by Clifton S. Robbins, which held a $16 million position; 2.4% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism include Ken Fisher’s Fisher Asset Management, Wallace Weitz’s Wallace R. Weitz & Co. and Israel Englander’s Millennium Management.
As aggregate interest increased, specific money managers have jumped into Sapient Corporation (NASDAQ:SAPE) headfirst. Silver Capital Management LLC, managed by Bruce Silver, assembled the biggest position in Sapient Corporation (NASDAQ:SAPE). Silver Capital Management LLC had 2 million invested in the company at the end of the quarter. Mike Vranos’s Ellington also initiated a $1 million position during the quarter. The other funds with new positions in the stock are David Costen Haley’s HBK Investments and Paul Tudor Jones’s Tudor Investment Corp.
How have insiders been trading Sapient Corporation (NASDAQ:SAPE)?
Insider buying is most useful when the company in focus has experienced transactions within the past half-year. Over the latest 180-day time period, Sapient Corporation (NASDAQ:SAPE) has seen zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).
With the returns demonstrated by our research, retail investors must always pay attention to hedge fund and insider trading activity, and Sapient Corporation (NASDAQ:SAPE) is an important part of this process.
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