Shares of Marvell Technology Group Ltd. (NASDAQ:MRVL) are up more than 60% year-to-date, so is now the time to take profits?
To the average investor, there are a multitude of methods investors can use to analyze publicly traded companies. A duo 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 top hedge fund managers can outclass the broader indices by a very impressive amount (see just how much).
Just as crucial, positive insider trading sentiment is a second way to analyze the world of equities. There are a variety of motivations for a bullish insider to get rid of shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the impressive potential of this method if shareholders understand what to do (learn more here).
Furthermore, let's study the newest info for Marvell Technology Group Ltd. (NASDAQ:MRVL).
At Q2's end, a total of 31 of the hedge funds we track were bullish in this stock, a change of -18% from the previous quarter. With hedgies' sentiment swirling, there exists a select group of notable hedge fund managers who were upping their holdings substantially.
Out of the hedge funds we follow, Greenlight Capital, managed by David Einhorn, holds the biggest position in Marvell Technology Group Ltd. (NASDAQ:MRVL). Greenlight Capital has a $518.6 million position in the stock, comprising 9.7% of its 13F portfolio. Sitting at the No. 2 spot is Cliff Asness of AQR Capital Management, with a $86.7 million position; 0.3% of its 13F portfolio is allocated to the company. Other hedgies that are bullish include Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital, Kerr Neilson's Platinum Asset Management and Curtis Macnguyen's Ivory Capital (Investment Mgmt).
Due to the fact Marvell Technology Group Ltd. (NASDAQ:MRVL) has witnessed a fall in interest from the entirety of the hedge funds we track, it's safe to say that there is a sect of hedge funds that decided to sell off their full holdings in Q1. Interestingly, Sanford J. Colen's Apex Capital dumped the largest position of the "upper crust" of funds we watch, totaling about $26.5 million in stock, and Matthew Knauer and Mina Faltas of Nokota Management was right behind this move, as the fund dropped about $7.7 million worth. These bearish behaviors are important to note, as total hedge fund interest was cut by 7 funds in Q1.
Insider buying made by high-level executives is at its handiest when the company we're looking at has seen transactions within the past 180 days. Over the latest 180-day time period, Marvell Technology Group Ltd. (NASDAQ:MRVL) has seen zero unique insiders buying, and 1 insider sales (see the details of insider trades here).
We'll also examine the relationship between both of these indicators in other stocks similar to Marvell Technology Group Ltd. (NASDAQ:MRVL). These stocks are Analog Devices, Inc. (NASDAQ:ADI), Semtech Corporation (NASDAQ:SMTC), Xilinx, Inc. (NASDAQ:XLNX), IPG Photonics Corporation (NASDAQ:IPGP), and Skyworks Solutions Inc (NASDAQ:SWKS). This group of stocks belong to the semiconductor - integrated circuits industry and their market caps match MRVL's market cap.