In the 21st century investor’s toolkit, there are tons of indicators market participants can use to track publicly traded companies. Some of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can trounce their index-focused peers by a very impressive amount (see just how much).
Equally as necessary, bullish insider trading activity is a second way to analyze the stock market universe. As the old adage goes: there are many incentives for an upper level exec to drop shares of his or her company, but only one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the market-beating potential of this strategy if investors understand where to look (learn more here).
Keeping this in mind, we're going to discuss the latest info about Analog Devices, Inc. (NASDAQ:ADI).
Heading into Q3, a total of 27 of the hedge funds we track held long positions in this stock, a change of 4% from the previous quarter. With the smart money's sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their stakes significantly.
When using filings from the hedgies we track, William von Mueffling's Cantillon Capital Management had the most valuable position in Analog Devices, Inc. (NASDAQ:ADI), worth close to $302.7 million, accounting for 9.2% of its total 13F portfolio. Coming in second is First Pacific Advisors LLC, managed by Robert Rodriguez and Steven Romick, which held a $166.8 million position; the fund has 1.8% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Ken Griffin's Citadel Investment Group, Jim Simons's Renaissance Technologies and Panayotis Sparaggis's Alkeon Capital Management.
As industrywide interest increased, particular hedge funds have jumped into Analog Devices, Inc. (NASDAQ:ADI) headfirst. Cantillon Capital Management, managed by William von Mueffling, assembled the most outsized position in Analog Devices, Inc. (NASDAQ:ADI). Cantillon Capital Management had 302.7 million invested in the company at the end of the quarter. Robert Rodriguez and Steven Romick's First Pacific Advisors LLC also initiated a $166.8 million position during the quarter. The other funds with brand new ADI positions are Ken Griffin's Citadel Investment Group, Jim Simons's Renaissance Technologies, and Panayotis Sparaggis's Alkeon Capital Management.
Insider buying made by high-level executives is particularly usable when the company in question has experienced transactions within the past six months. Over the last six-month time frame, Analog Devices, Inc. (NASDAQ:ADI) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll also take a look at the relationship between both of these indicators in other stocks similar to Analog Devices, Inc. (NASDAQ:ADI). These stocks are IPG Photonics Corporation (NASDAQ:IPGP), Skyworks Solutions Inc (NASDAQ:SWKS), Marvell Technology Group Ltd. (NASDAQ:MRVL), Xilinx, Inc. (NASDAQ:XLNX), and Broadcom Corporation (NASDAQ:BRCM). This group of stocks are the members of the semiconductor - integrated circuits industry and their market caps are closest to ADI's market cap.