Is Windstream Corporation (NASDAQ:WIN) undervalued? The best stock pickers are becoming hopeful. The number of bullish hedge fund bets rose by 5 in recent months.
In the financial world, there are many methods investors can use to analyze their holdings. A couple of the best 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 money managers can outclass the broader indices by a solid margin (see just how much).
Equally as integral, bullish insider trading activity is a second way to parse down the financial markets. Just as you’d expect, there are lots of incentives for an executive to downsize shares of his or her company, but just one, very obvious reason why they would behave bullishly. Various empirical studies have demonstrated the valuable potential of this method if piggybackers understand what to do (learn more here).
With all of this in mind, we’re going to take a gander at the latest action encompassing Windstream Corporation (NASDAQ:WIN).
Hedge fund activity in Windstream Corporation (NASDAQ:WIN)
At Q1’s end, a total of 16 of the hedge funds we track were bullish in this stock, a change of 45% from the first quarter.
As aggregate interest increased, key money managers have been driving this bullishness. Steadfast Capital Management, managed by Robert Pitts, initiated the most outsized position in Windstream Corporation (NASDAQ:WIN). Steadfast Capital Management had 7.8 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $5.5 million investment in the stock during the quarter. The other funds with new positions in the stock are Joel Greenblatt’s Gotham Asset Management, Neil Chriss’s Hutchin Hill Capital, and Noam Gottesman’s GLG Partners.
What have insiders been doing with Windstream Corporation (NASDAQ:WIN)?
Bullish insider trading is at its handiest when the company in focus has experienced transactions within the past 180 days. Over the latest half-year time period, Windstream Corporation (NASDAQ:WIN) has experienced 4 unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Windstream Corporation (NASDAQ:WIN). These stocks are Chunghwa Telecom Co., Ltd (ADR) (NYSE:CHT), Atlantic Tele-Network, Inc. (NASDAQ:ATNI), CenturyLink, Inc. (NYSE:CTL), TW Telecom Inc (NASDAQ:TWTC), and Frontier Communications Corp (NASDAQ:FTR). This group of stocks belong to the telecom services – domestic industry and their market caps are similar to WIN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Chunghwa Telecom Co., Ltd (ADR) (NYSE:CHT) | 7 | 0 | 0 |
| Atlantic Tele-Network, Inc. (NASDAQ:ATNI) | 8 | 0 | 4 |
| CenturyLink, Inc. (NYSE:CTL) | 23 | 1 | 3 |
| TW Telecom Inc (NASDAQ:TWTC) | 30 | 0 | 9 |
| Frontier Communications Corp (NASDAQ:FTR) | 18 | 0 | 0 |
With the results shown by our research, everyday investors must always pay attention to hedge fund and insider trading sentiment, and Windstream Corporation (NASDAQ:WIN) is no exception.
