DSP Group, Inc. (NASDAQ:DSPG) was in 8 hedge funds’ portfolio at the end of December. DSPG investors should pay attention to a decrease in support from the world’s most elite money managers lately. There were 8 hedge funds in our database with DSPG positions at the end of the previous quarter, which is a negative development in our experience.
In today’s marketplace, there are plenty of metrics shareholders can use to analyze publicly traded companies. Two of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best investment managers can trounce the S&P 500 by a significant margin (see just how much).
Just as important, optimistic insider trading sentiment is another way to parse down the marketplace. As the old adage goes: there are a variety of stimuli for a bullish insider to downsize shares of his or her company, but only one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the market-beating potential of this method if piggybackers understand what to do (learn more here).
Now, let’s take a look at the latest action encompassing DSP Group, Inc. (NASDAQ:DSPG).
How are hedge funds trading DSP Group, Inc. (NASDAQ:DSPG)?
At the end of the fourth quarter, a total of 8 of the hedge funds we track were bullish in this stock, a change of 0% from the third quarter. With hedgies’ sentiment swirling, there exists a few notable hedge fund managers who were increasing their stakes significantly.
When looking at the hedgies we track, Starboard Value LP, managed by Jeffrey Smith, holds the largest position in DSP Group, Inc. (NASDAQ:DSPG). Starboard Value LP has a $12.8 million position in the stock, comprising 1.5% of its 13F portfolio. On Starboard Value LP’s heels is Roumell Asset Management, managed by Jim Roumell, which held a $7.4 million position; the fund has 4.7% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Brett Hendrickson’s Nokomis Capital, Jim Simons’s Renaissance Technologies and D. E. Shaw’s D E Shaw.
How are insiders trading DSP Group, Inc. (NASDAQ:DSPG)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company in question has experienced transactions within the past six months. Over the latest six-month time frame, DSP Group, Inc. (NASDAQ:DSPG) has seen 1 unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to DSP Group, Inc. (NASDAQ:DSPG). These stocks are EMCORE Corporation (NASDAQ:EMKR), Pericom Semiconductor (NASDAQ:PSEM), MoSys Inc. (NASDAQ:MOSY), ANADIGICS, Inc. (NASDAQ:ANAD), and Tower Semiconductor Ltd. (USA) (NASDAQ:TSEM). All of these stocks are in the semiconductor – integrated circuits industry and their market caps resemble DSPG’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| EMCORE Corporation (NASDAQ:EMKR) | 6 | 0 | 6 |
| Pericom Semiconductor (NASDAQ:PSEM) | 7 | 0 | 0 |
| MoSys Inc. (NASDAQ:MOSY) | 4 | 0 | 0 |
| ANADIGICS, Inc. (NASDAQ:ANAD) | 6 | 0 | 1 |
| Tower Semiconductor Ltd. (USA) (NASDAQ:TSEM) | 1 | 0 | 0 |
With the results exhibited by Insider Monkey’s studies, everyday investors must always monitor hedge fund and insider trading activity, and DSP Group, Inc. (NASDAQ:DSPG) applies perfectly to this mantra.
