Comtech Telecomm. Corp. (NASDAQ:CMTL) has experienced an increase in hedge fund interest in recent months.
In the financial world, there are a multitude of metrics market participants can use to watch the equity markets. Some of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top money managers can beat their index-focused peers by a solid amount (see just how much).
Equally as integral, optimistic insider trading activity is another way to parse down the financial markets. Obviously, there are a variety of stimuli for a corporate insider to cut shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this tactic if “monkeys” know what to do (learn more here).
Keeping this in mind, let’s take a glance at the latest action regarding Comtech Telecomm. Corp. (NASDAQ:CMTL).
Hedge fund activity in Comtech Telecomm. Corp. (NASDAQ:CMTL)
Heading into 2013, a total of 11 of the hedge funds we track were bullish in this stock, a change of 38% from the third quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were boosting their holdings considerably.
Of the funds we track, AQR Capital Management, managed by Cliff Asness, holds the biggest position in Comtech Telecomm. Corp. (NASDAQ:CMTL). AQR Capital Management has a $9.1 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second largest stake is held by Jim Simons of Renaissance Technologies, with a $6.2 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Chuck Royce’s Royce & Associates, Israel Englander’s Millennium Management and Ken Griffin’s Citadel Investment Group.
With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Gotham Asset Management, managed by Joel Greenblatt, initiated the largest position in Comtech Telecomm. Corp. (NASDAQ:CMTL). Gotham Asset Management had 1.7 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also initiated a $1.3 million position during the quarter. The other funds with brand new CMTL positions are Peter Algert and Kevin Coldiron’s Algert Coldiron Investors and Ken Gray and Steve Walsh’s Bryn Mawr Capital.
How have insiders been trading Comtech Telecomm. Corp. (NASDAQ:CMTL)?
Insider trading activity, especially when it’s bullish, is particularly usable when the company in focus has seen transactions within the past six months. Over the last 180-day time period, Comtech Telecomm. Corp. (NASDAQ:CMTL) has seen zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Comtech Telecomm. Corp. (NASDAQ:CMTL). These stocks are Sierra Wireless, Inc. (USA) (NASDAQ:SWIR), 8×8, Inc. (NASDAQ:EGHT), CalAmp Corp. (NASDAQ:CAMP), Allot Communications Ltd. (NASDAQ:ALLT), and Calix Inc (NYSE:CALX). This group of stocks are in the communication equipment industry and their market caps are similar to CMTL’s market cap.