Is Allot Communications Ltd. (NASDAQ:ALLT) an exceptional investment now? Money managers are becoming less hopeful. The number of long hedge fund bets were cut by 1 lately.
In today’s marketplace, there are dozens of methods market participants can use to watch publicly traded companies. A duo of the best are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can outclass the S&P 500 by a solid amount (see just how much).
Equally as integral, positive insider trading sentiment is another way to parse down the world of equities. Obviously, there are lots of motivations for an insider to get rid of shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the market-beating potential of this tactic if "monkeys" understand what to do (learn more here).
With all of this in mind, we're going to take a peek at the key action regarding Allot Communications Ltd. (NASDAQ:ALLT).
In preparation for this year, a total of 10 of the hedge funds we track were bullish in this stock, a change of -9% from the previous quarter. With hedgies' sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their holdings considerably.
When looking at the hedgies we track, John Murphy's Alydar Capital had the largest position in Allot Communications Ltd. (NASDAQ:ALLT), worth close to $30 million, accounting for 2.4% of its total 13F portfolio. Coming in second is Columbus Circle Investors, managed by Donald Chiboucis, which held a $13 million position; 0% of its 13F portfolio is allocated to the company. Remaining hedge funds that hold long positions include Jim Simons's Renaissance Technologies, Israel Englander's Millennium Management and Mike Vranos's Ellington.
Due to the fact that Allot Communications Ltd. (NASDAQ:ALLT) has faced bearish sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few fund managers that elected to cut their entire stakes last quarter. At the top of the heap, Drew Cupps's Cupps Capital Management dropped the largest investment of all the hedgies we monitor, totaling close to $8 million in stock., and Richard Driehaus of Driehaus Capital was right behind this move, as the fund cut about $5 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 1 funds last quarter.
Insider buying is most useful when the company we're looking at has seen transactions within the past half-year. Over the latest 180-day time frame, Allot Communications Ltd. (NASDAQ:ALLT) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let's check out hedge fund and insider activity in other stocks similar to Allot Communications Ltd. (NASDAQ:ALLT). These stocks are Exfo Inc (NASDAQ:EXFO), Sierra Wireless, Inc. (USA) (NASDAQ:SWIR), Comtech Telecomm. Corp. (NASDAQ:CMTL), Calix Inc (NYSE:CALX), and CalAmp Corp. (NASDAQ:CAMP). All of these stocks are in the communication equipment industry and their market caps are similar to ALLT's market cap.