Do Hedge Funds and Insiders Love OpenTable Inc (OPEN)?
Is OpenTable Inc (NASDAQ:OPEN) a good buy?
Now, according to many investors, hedge funds are perceived as bloated, old investment vehicles of a forgotten age. Although there are more than 8,000 hedge funds in operation today, this site looks at the leaders of this group, close to 525 funds. Analysts calculate that this group oversees the lion's share of the hedge fund industry's total capital, and by keeping an eye on their best equity investments, we've spotted a number of investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we've started sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).
Just as crucial, optimistic insider trading activity is a second way to analyze the world of equities. There are many reasons for an insider to downsize shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Many empirical studies have demonstrated the useful potential of this tactic if piggybackers understand what to do (learn more here).
Now that that's out of the way, we're going to study the newest info surrounding OpenTable Inc (NASDAQ:OPEN).
What does the smart money think about OpenTable Inc (NASDAQ:OPEN)?
In preparation for the third quarter, a total of 19 of the hedge funds we track held long positions in this stock, a change of 27% from the previous quarter. With hedge funds' sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their stakes meaningfully.
According to our 13F database, SAC Capital Advisors, managed by Steven Cohen, holds the largest position in OpenTable Inc (NASDAQ:OPEN). SAC Capital Advisors has a $54.7 million position in the stock, comprising 0.3% of its 13F portfolio. The second largest stake is held by JAT Capital Management, managed by John Thaler, which held a $46.8 million position; 1.9% of its 13F portfolio is allocated to the company. Remaining hedgies that hold long positions include William von Mueffling's Cantillon Capital Management, Sanford J. Colen's Apex Capital and Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital.
Now, particular hedge funds were leading the bulls' herd. SAC Capital Advisors, managed by Steven Cohen, created the largest position in OpenTable Inc (NASDAQ:OPEN). SAC Capital Advisors had 54.7 million invested in the company at the end of the quarter. John Thaler's JAT Capital Management also made a $46.8 million investment in the stock during the quarter. The other funds with new positions in the stock are William von Mueffling's Cantillon Capital Management, Sanford J. Colen's Apex Capital, and Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital.
How are insiders trading OpenTable Inc (NASDAQ:OPEN)?
Bullish insider trading is particularly usable when the company we're looking at has experienced transactions within the past 180 days. Over the last 180-day time frame, OpenTable Inc (NASDAQ:OPEN) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll also take a look at the relationship between both of these indicators in other stocks similar to OpenTable Inc (NASDAQ:OPEN). These stocks are Bankrate Inc (NYSE:RATE), InterXion Holding NV (NYSE:INXN), Shutterfly, Inc. (NASDAQ:SFLY), Kayak Software Corp (NASDAQ:KYAK), and Yelp Inc (NYSE:YELP). All of these stocks are in the internet information providers industry and their market caps resemble OPEN's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
Bankrate Inc (NYSE:RATE)
InterXion Holding NV (NYSE:INXN)
Shutterfly, Inc. (NASDAQ:SFLY)
Kayak Software Corp (NASDAQ:KYAK)
Yelp Inc (NYSE:YELP)
Using the results shown by our analyses, average investors should always track hedge fund and insider trading sentiment, and OpenTable Inc (NASDAQ:OPEN) shareholders fit into this picture quite nicely.