At the moment, there are a multitude of methods market participants can use to monitor stocks. A duo of the most useful are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best fund managers can trounce the market by a significant margin (see just how much).
Just as key, bullish insider trading sentiment is another way to analyze the marketplace. Obviously, there are a variety of stimuli for a corporate insider to cut shares of his or her company, but just one, very clear reason why they would buy. Several academic studies have demonstrated the impressive potential of this method if “monkeys” understand what to do (learn more here).
Furthermore, we’re going to discuss the latest info surrounding Cypress Semiconductor Corporation (NASDAQ:CY).
How are hedge funds trading Cypress Semiconductor Corporation (NASDAQ:CY)?
At the end of the second quarter, a total of 13 of the hedge funds we track were bullish in this stock, a change of 0% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their stakes meaningfully.
Out of the hedge funds we follow, GAMCO Investors, managed by Mario Gabelli, holds the largest position in Cypress Semiconductor Corporation (NASDAQ:CY). GAMCO Investors has a $16.6 million position in the stock, comprising 0.1% of its 13F portfolio. On GAMCO Investors’s heels is Harvest Capital Strategies, managed by Joseph A. Jolson, which held a $15.1 million position; 1.3% of its 13F portfolio is allocated to the stock. Some other hedgies that are bullish include Ken Grossman and Glen Schneider’s SG Capital Management, Van Schreiber’s Bennett Lawrence Management and Matthew Hulsizer’s PEAK6 Capital Management.
Judging by the fact that Cypress Semiconductor Corporation (NASDAQ:CY) has witnessed dropping sentiment from the smart money’s best and brightest, logic holds that there exists a select few hedge funds who sold off their entire stakes in Q1. At the top of the heap, Jim Simons’s Renaissance Technologies dumped the largest investment of the 450+ funds we watch, comprising about $3.1 million in stock, and Scott Fine and Peter Richards of Empire Capital Management was right behind this move, as the fund dumped about $2.2 million worth. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
How are insiders trading Cypress Semiconductor Corporation (NASDAQ:CY)?
Bullish insider trading is most useful when the company in focus has experienced transactions within the past 180 days. Over the latest half-year time period, Cypress Semiconductor Corporation (NASDAQ:CY) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Cypress Semiconductor Corporation (NASDAQ:CY). These stocks are Mellanox Technologies, Ltd. (NASDAQ:MLNX), Intersil Corp (NASDAQ:ISIL), Cavium Inc (NASDAQ:CAVM), Vishay Intertechnology (NYSE:VSH), and Advanced Micro Devices, Inc. (NYSE:AMD). This group of stocks belong to the semiconductor – broad line industry and their market caps resemble CY’s market cap.