Is ANADIGICS, Inc. (NASDAQ:ANAD) a safe investment now? The smart money is in a pessimistic mood. The number of bullish hedge fund positions fell by 1 lately.
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Just as important, positive insider trading activity is another way to break down the world of equities. Obviously, there are many incentives for a corporate insider to get rid of shares of his or her company, but just one, very clear reason why they would behave bullishly. Several academic studies have demonstrated the impressive potential of this tactic if you know what to do (learn more here).
Consequently, we're going to take a look at the latest action surrounding ANADIGICS, Inc. (NASDAQ:ANAD).
In preparation for this quarter, a total of 5 of the hedge funds we track were long in this stock, a change of -17% from the previous quarter. With the smart money's capital changing hands, there exists an "upper tier" of noteworthy hedge fund managers who were boosting their stakes substantially.
Of the funds we track, Chuck Royce's Royce & Associates had the most valuable position in ANADIGICS, Inc. (NASDAQ:ANAD), worth close to $5.9 million, comprising less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is Israel Englander of Millennium Management, with a $2 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other hedgies with similar optimism include Charles Clough's Clough Capital Partners, Matthew Hulsizer's PEAK6 Capital Management and Ken Griffin's Citadel Investment Group.
Seeing as ANADIGICS, Inc. (NASDAQ:ANAD) has experienced declining sentiment from the aggregate hedge fund industry, it's easy to see that there lies a certain "tier" of hedge funds who sold off their full holdings heading into Q2. At the top of the heap, Jim Simons's Renaissance Technologies cut the biggest stake of the "upper crust" of funds we track, totaling close to $0.3 million in stock.. Ben Levine, Andrew Manuel and Stefan Renold's fund, LMR Partners, also dumped its stock, about $0.1 million worth. These moves are interesting, as aggregate hedge fund interest dropped by 1 funds heading into Q2.
Insider trading activity, especially when it's bullish, is best served when the primary stock in question has seen transactions within the past 180 days. Over the latest 180-day time period, ANADIGICS, Inc. (NASDAQ:ANAD) has seen zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
Let's also examine hedge fund and insider activity in other stocks similar to ANADIGICS, Inc. (NASDAQ:ANAD). These stocks are DSP Group, Inc. (NASDAQ:DSPG), EMCORE Corporation (NASDAQ:EMKR), and Pericom Semiconductor (NASDAQ:PSEM). This group of stocks belong to the semiconductor - integrated circuits industry and their market caps match ANAD's market cap.