Is ADTRAN, Inc. (NASDAQ:ADTN) a superb investment now? Hedge funds are reducing their bets on the stock. The number of long hedge fund positions decreased by 6 in recent months.
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Keeping this in mind, it’s important to take a peek at the latest action surrounding ADTRAN, Inc. (NASDAQ:ADTN).
What does the smart money think about ADTRAN, Inc. (NASDAQ:ADTN)?
In preparation for this year, a total of 6 of the hedge funds we track held long positions in this stock, a change of -50% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their stakes meaningfully.
When looking at the hedgies we track, Chuck Royce’s Royce & Associates had the largest position in ADTRAN, Inc. (NASDAQ:ADTN), worth close to $148.5 million, accounting for 0.5% of its total 13F portfolio. On Royce & Associates’s heels is Steadfast Capital Management, managed by Robert Pitts, which held a $9.2 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Cliff Asness’s AQR Capital Management, Joel Greenblatt’s Gotham Asset Management and Ken Griffin’s Citadel Investment Group.
Seeing as ADTRAN, Inc. (NASDAQ:ADTN) has witnessed bearish sentiment from the smart money, logic holds that there exists a select few fund managers that slashed their full holdings last quarter. Interestingly, Jim Simons’s Renaissance Technologies dumped the biggest investment of the “upper crust” of funds we track, valued at close to $4.6 million in stock., and SAC Subsidiary of CR Intrinsic Investors was right behind this move, as the fund cut about $1.9 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 6 funds last quarter.
What do corporate executives and insiders think about ADTRAN, Inc. (NASDAQ:ADTN)?
Bullish insider trading is best served when the company in focus has seen transactions within the past six months. Over the latest 180-day time frame, ADTRAN, Inc. (NASDAQ:ADTN) has experienced zero unique insiders buying, and 1 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to ADTRAN, Inc. (NASDAQ:ADTN). These stocks are Arris Group, Inc. (NASDAQ:ARRS), Infinera Corp. (NASDAQ:INFN), Ciena Corporation (NASDAQ:CIEN), Loral Space & Communications Ltd. (NASDAQ:LORL), and NetGear, Inc. (NASDAQ:NTGR). This group of stocks belong to the communication equipment industry and their market caps resemble ADTN’s market cap.