Is Web.com Group Inc (NASDAQ:WWWW) worth watching?
In today’s marketplace, there are a multitude of gauges investors can use to watch the equity markets. Some of the most underrated 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 investment managers can outclass the S&P 500 by a significant margin (see just how much).
Just as key, positive insider trading activity is another way to look at the world of equities. There are plenty of incentives for a corporate insider to downsize shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of academic studies have demonstrated the impressive potential of this method if shareholders understand where to look (learn more here).
Thus, we’re going to examine the latest info surrounding Web.com Group Inc (NASDAQ:WWWW).
How have hedgies been trading Web.com Group Inc (NASDAQ:WWWW)?
At Q2’s end, a total of 11 of the hedge funds we track were long in this stock, a change of 10% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their holdings substantially.
Out of the hedge funds we follow, Craig C. Albert’s Sheffield Asset Management had the largest position in Web.com Group Inc (NASDAQ:WWWW), worth close to $20.5 million, accounting for 4.3% of its total 13F portfolio. Coming in second is Shannon River Fund Management, managed by Spencer M. Waxman, which held a $11 million position; 1.3% of its 13F portfolio is allocated to the company. Other hedge funds with similar optimism include Peter A. Wright’s P.A.W. CAPITAL PARTNERS, D. E. Shaw’s D E Shaw and Phil Frohlich’s Prescott Group Capital Management.
As aggregate interest spiked, specific money managers were leading the bulls’ herd. Sheffield Asset Management, managed by Craig C. Albert, created the most valuable position in Web.com Group Inc (NASDAQ:WWWW). Sheffield Asset Management had 20.5 million invested in the company at the end of the quarter. Spencer M. Waxman’s Shannon River Fund Management also initiated a $11 million position during the quarter. The following funds were also among the new WWWW investors: Peter A. Wright’s P.A.W. CAPITAL PARTNERS, D. E. Shaw’s D E Shaw, and Phil Frohlich’s Prescott Group Capital Management.
How are insiders trading Web.com Group Inc (NASDAQ:WWWW)?
Legal insider trading, particularly when it’s bullish, is at its handiest when the company in focus has seen transactions within the past six months. Over the latest 180-day time period, Web.com Group Inc (NASDAQ:WWWW) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Web.com Group Inc (NASDAQ:WWWW). These stocks are SouFun Holdings Limited (ADR) (NYSE:SFUN), OpenTable Inc (NASDAQ:OPEN), Bankrate Inc (NYSE:RATE), HealthStream, Inc. (NASDAQ:HSTM), and Blucora Inc (NASDAQ:BCOR). This group of stocks are the members of the internet information providers industry and their market caps are closest to WWWW’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| SouFun Holdings Limited (ADR) (NYSE:SFUN) | 11 | 0 | 0 |
| OpenTable Inc (NASDAQ:OPEN) | 19 | 0 | 0 |
| Bankrate Inc (NYSE:RATE) | 10 | 0 | 0 |
| HealthStream, Inc. (NASDAQ:HSTM) | 11 | 0 | 0 |
| Blucora Inc (NASDAQ:BCOR) | 24 | 0 | 0 |
Using the returns explained by our tactics, average investors must always track hedge fund and insider trading activity, and Web.com Group Inc (NASDAQ:WWWW) is an important part of this process.
