Is TASER International, Inc. (NASDAQ:TASR) ready to raly soon? The smart money is buying. The number of bullish hedge fund positions rose by 4 in recent months.
In the financial world, there are many methods market participants can use to analyze Mr. Market. Two of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top money managers can outpace the S&P 500 by a healthy margin (see just how much).
Equally as important, optimistic insider trading sentiment is another way to break down the stock market universe. Just as you’d expect, there are a number of reasons for a corporate insider to get rid of shares of his or her company, but only one, very simple reason why they would buy. Many academic studies have demonstrated the useful potential of this strategy if shareholders know where to look (learn more here).
Now, it’s important to take a peek at the key action surrounding TASER International, Inc. (NASDAQ:TASR).
What have hedge funds been doing with TASER International, Inc. (NASDAQ:TASR)?
In preparation for this year, a total of 16 of the hedge funds we track were long in this stock, a change of 33% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their holdings considerably.
Of the funds we track, Renaissance Technologies, managed by Jim Simons, holds the largest position in TASER International, Inc. (NASDAQ:TASR). Renaissance Technologies has a $14 million position in the stock, comprising 0% of its 13F portfolio. Sitting at the No. 2 spot is Thomas E. Claugus of GMT Capital, with a $5 million position; 1.4% of its 13F portfolio is allocated to the company. Remaining peers that are bullish include Israel Englander’s Millennium Management, Ken Griffin’s Citadel Investment Group and Mark Broach’s Manatuck Hill Partners.
With a general bullishness amongst the heavyweights, some big names were breaking ground themselves. TCS Capital Management, managed by Eric Semler, assembled the most valuable position in TASER International, Inc. (NASDAQ:TASR). TCS Capital Management had 2 million invested in the company at the end of the quarter. Robert B. Gillam’s McKinley Capital Management also initiated a $2 million position during the quarter. The other funds with new positions in the stock are Richard Driehaus’s Driehaus Capital, Neil Chriss’s Hutchin Hill Capital, and Drew Cupps’s Cupps Capital Management.
How have insiders been trading TASER International, Inc. (NASDAQ:TASR)?
Insider purchases made by high-level executives is most useful when the company in focus has seen transactions within the past half-year. Over the latest six-month time period, TASER International, Inc. (NASDAQ:TASR) has experienced 1 unique insiders buying, and 2 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to TASER International, Inc. (NASDAQ:TASR). These stocks are AAR Corp. (NYSE:AIR), LMI Aerospace, Inc. (NASDAQ:LMIA), Smith & Wesson Holding Corporation (NASDAQ:SWHC), AeroVironment, Inc. (NASDAQ:AVAV), and Astronics Corporation (NASDAQ:ATRO). This group of stocks belong to the aerospace/defense products & services industry and their market caps are similar to TASR’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|AAR Corp. (NYSE:AIR)||13||0||4|
|LMI Aerospace, Inc. (NASDAQ:LMIA)||2||0||0|
|Smith & Wesson Holding Corporation (NASDAQ:SWHC)||14||1||2|
|AeroVironment, Inc. (NASDAQ:AVAV)||11||0||3|
|Astronics Corporation (NASDAQ:ATRO)||6||0||2|
With the results demonstrated by Insider Monkey’s time-tested strategies, retail investors must always keep an eye on hedge fund and insider trading sentiment, and TASER International, Inc. (NASDAQ:TASR) applies perfectly to this mantra.
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