Hedge Funds Aren’t Crazy About Team, Inc. (TISI) Anymore
Is Team, Inc. (NYSE:TISI) a good investment?
In the 21st century investor’s toolkit, there are tons of methods shareholders can use to monitor stocks. 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 best picks of the elite hedge fund managers can trounce the market by a significant amount (see just how much).
Just as key, bullish insider trading sentiment is another way to look at the stock market universe. There are lots of stimuli for an executive to cut shares of his or her company, but just one, very simple reason why they would buy. Several academic studies have demonstrated the market-beating potential of this method if investors know what to do (learn more here).
Furthermore, let's analyze the latest info for Team, Inc. (NYSE:TISI).
What does the smart money think about Team, Inc. (NYSE:TISI)?
At Q2's end, a total of 6 of the hedge funds we track held long positions in this stock, a change of -33% from the first quarter. With hedge funds' sentiment swirling, there exists an "upper tier" of noteworthy hedge fund managers who were boosting their holdings meaningfully.
When using filings from the hedgies we track, Ariel Investments, managed by John W. Rogers, holds the largest position in Team, Inc. (NYSE:TISI). Ariel Investments has a $42.3 million position in the stock, comprising 0.7% of its 13F portfolio. Sitting at the No. 2 spot is Royce & Associates, managed by Chuck Royce, which held a $37.8 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include Richard Driehaus's Driehaus Capital, Cliff Asness's AQR Capital Management and D. E. Shaw's D E Shaw.
Because Team, Inc. (NYSE:TISI) has witnessed dropping sentiment from the smart money's best and brightest, we can see that there was a specific group of funds who were dropping their full holdings in Q1. At the top of the heap, Phill Gross and Robert Atchinson's Adage Capital Management said goodbye to the largest position of the 450+ funds we track, comprising close to $12.9 million in stock, and Andrew Sandler of Sandler Capital Management was right behind this move, as the fund said goodbye to about $5.3 million worth. These transactions are interesting, as aggregate hedge fund interest was cut by 3 funds in Q1.
How are insiders trading Team, Inc. (NYSE:TISI)?
Insider buying made by high-level executives is at its handiest when the company in focus has experienced transactions within the past half-year. Over the latest 180-day time period, Team, Inc. (NYSE:TISI) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We'll check out the relationship between both of these indicators in other stocks similar to Team, Inc. (NYSE:TISI). These stocks are RPX Corp (NASDAQ:RPXC), Insperity Inc (NYSE:NSP), WNS (Holdings) Limited (ADR) (NYSE:WNS), LivePerson, Inc. (NASDAQ:LPSN), and InnerWorkings, Inc. (NASDAQ:INWK). This group of stocks are in the business services industry and their market caps resemble TISI's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
RPX Corp (NASDAQ:RPXC)
Insperity Inc (NYSE:NSP)
WNS (Holdings) Limited (ADR) (NYSE:WNS)
LivePerson, Inc. (NASDAQ:LPSN)
InnerWorkings, Inc. (NASDAQ:INWK)
Using the returns demonstrated by the previously mentioned studies, regular investors must always pay attention to hedge fund and insider trading activity, and Team, Inc. (NYSE:TISI) is no exception.