InvenSense Inc (INVN): Is Now The Time To Take Profits?

Page 1 of 2

InvenSense Inc (NYSE:INVN) has had a stellar 2013, up nearly 60%, but one sect of the marketplace appears to be taking profits. Should you follow?

To the average investor, there are plenty of methods market participants can use to track Mr. Market. Some of the most useful are hedge fund and insider trading activity. 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 significant margin (see just how much).

Equally as useful, positive insider trading activity is a second way to analyze the financial markets. Just as you’d expect, there are plenty of reasons for an executive to drop shares of his or her company, but only one, very simple reason why they would buy. Several empirical studies have demonstrated the impressive potential of this method if “monkeys” know what to do (learn more here).

InvenSense Inc (NYSE:INVN)

Thus, it’s important to examine the recent info surrounding InvenSense Inc (NYSE:INVN).

Hedge fund activity in InvenSense Inc (NYSE:INVN)

Heading into Q3, a total of 14 of the hedge funds we track held long positions in this stock, a change of -22% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes significantly.

Out of the hedge funds we follow, Daniel Benton’s Andor Capital Management had the biggest position in InvenSense Inc (NYSE:INVN), worth close to $30.8 million, accounting for 4.5% of its total 13F portfolio. Sitting at the No. 2 spot is Royce & Associates, managed by Chuck Royce, which held a $17.4 million position; 0.1% of its 13F portfolio is allocated to the company. Other hedgies that are bullish include Scott Fine and Peter Richards’s Empire Capital Management, Mark Kingdon’s Kingdon Capital and Phill Gross and Robert Atchinson’s Adage Capital Management.

Judging by the fact that InvenSense Inc (NYSE:INVN) has faced bearish sentiment from the entirety of the hedge funds we track, we can see that there exists a select few funds that slashed their entire stakes in Q1. Intriguingly, Jason F. Harris’s Kendall Square Capital dropped the largest investment of the 450+ funds we key on, totaling close to $5.7 million in stock, and Steven Cohen of SAC Capital Advisors was right behind this move, as the fund said goodbye to about $3.7 million worth. These moves are intriguing to say the least, as total hedge fund interest was cut by 4 funds in Q1.

How are insiders trading InvenSense Inc (NYSE:INVN)?

Insider buying made by high-level executives is most useful when the primary stock in question has seen transactions within the past half-year. Over the latest 180-day time period, InvenSense Inc (NYSE:INVN) has experienced zero unique insiders buying, and 8 insider sales (see the details of insider trades here).

We’ll check out the relationship between both of these indicators in other stocks similar to InvenSense Inc (NYSE:INVN). These stocks are QLogic Corporation (NASDAQ:QLGC), MEMC Electronic Materials, Inc. (NYSE:WFR), Cabot Microelectronics Corporation (NASDAQ:CCMP), TriQuint Semiconductor (NASDAQ:TQNT), and Diodes Incorporated (NASDAQ:DIOD). This group of stocks are in the semiconductor – integrated circuits industry and their market caps are closest to INVN’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!