Is Cirrus Logic, Inc. (NASDAQ:CRUS) a healthy stock for your portfolio? The best stock pickers are getting less bullish. The number of bullish hedge fund positions decreased by 1 lately.
In the financial world, there are dozens of methods shareholders can use to monitor Mr. Market. A couple of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top investment managers can outclass the broader indices by a superb amount (see just how much).
Equally as beneficial, bullish insider trading activity is another way to break down the investments you're interested in. Obviously, there are lots of incentives for an insider to get rid of shares of his or her company, but just one, very simple reason why they would buy. Several empirical studies have demonstrated the market-beating potential of this strategy if shareholders know where to look (learn more here).
Now, it's important to take a glance at the key action encompassing Cirrus Logic, Inc. (NASDAQ:CRUS).
At Q1's end, a total of 20 of the hedge funds we track held long positions in this stock, a change of -5% from the previous quarter. With the smart money's positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their holdings considerably.
According to our comprehensive database, Andor Capital Management, managed by Daniel Benton, holds the biggest position in Cirrus Logic, Inc. (NASDAQ:CRUS). Andor Capital Management has a $22.8 million position in the stock, comprising 2.9% of its 13F portfolio. On Andor Capital Management's heels is Chuck Royce of Royce & Associates, with a $16.4 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Glenn Russell Dubin's Highbridge Capital Management, John Thaler's JAT Capital Management and Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital.
Due to the fact that Cirrus Logic, Inc. (NASDAQ:CRUS) has faced declining sentiment from the aggregate hedge fund industry, it's easy to see that there exists a select few funds who were dropping their full holdings last quarter. Intriguingly, Richard Driehaus's Driehaus Capital sold off the largest investment of all the hedgies we key on, worth about $6.9 million in stock., and Scott Fine and Peter Richards of Empire Capital Management was right behind this move, as the fund sold off about $5.9 million worth. These moves are interesting, as aggregate hedge fund interest fell by 1 funds last quarter.
Insider trading activity, especially when it's bullish, is at its handiest when the company in question has seen transactions within the past half-year. Over the last half-year time period, Cirrus Logic, Inc. (NASDAQ:CRUS) has experienced zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).
Let's also review hedge fund and insider activity in other stocks similar to Cirrus Logic, Inc. (NASDAQ:CRUS). These stocks are First Solar, Inc. (NASDAQ:FSLR), Himax Technologies, Inc. (ADR) (NASDAQ:HIMX), SunPower Corporation (NASDAQ:SPWR), Silicon Laboratories (NASDAQ:SLAB), and SolarCity Corp (NASDAQ:SCTY). This group of stocks belong to the semiconductor - specialized industry and their market caps are closest to CRUS's market cap.