Is MTS Systems Corporation (NASDAQ:MTSC) the right investment to pursue these days? Prominent investors are becoming less hopeful. The number of bullish hedge fund positions were cut by 3 recently.
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With these “truths” under our belt, it’s important to take a gander at the recent action regarding MTS Systems Corporation (NASDAQ:MTSC).
What does the smart money think about MTS Systems Corporation (NASDAQ:MTSC)?
In preparation for this quarter, a total of 8 of the hedge funds we track were long in this stock, a change of -27% from the first quarter. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were increasing their holdings considerably.
When looking at the hedgies we track, Chuck Royce’s Royce & Associates had the biggest position in MTS Systems Corporation (NASDAQ:MTSC), worth close to $38.4 million, comprising 0.1% of its total 13F portfolio. Coming in second is Jim Simons of Renaissance Technologies, with a $12.2 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining hedge funds that are bullish include John Overdeck and David Siegel’s Two Sigma Advisors, D. E. Shaw’s D E Shaw and Cliff Asness’s AQR Capital Management.
Judging by the fact that MTS Systems Corporation (NASDAQ:MTSC) has experienced falling interest from the aggregate hedge fund industry, it’s easy to see that there were a few hedge funds that slashed their positions entirely heading into Q2. It’s worth mentioning that Joel Greenblatt’s Gotham Asset Management cut the biggest investment of the 450+ funds we watch, worth about $2.2 million in stock., and Andy Redleaf of Whitebox Advisors was right behind this move, as the fund cut about $1.4 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 3 funds heading into Q2.
What have insiders been doing with MTS Systems Corporation (NASDAQ:MTSC)?
Insider buying is best served when the company we’re looking at has experienced transactions within the past 180 days. Over the latest six-month time period, MTS Systems Corporation (NASDAQ:MTSC) has seen zero unique insiders buying, and 3 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to MTS Systems Corporation (NASDAQ:MTSC). These stocks are Badger Meter, Inc. (NYSE:BMI), ESCO Technologies Inc. (NYSE:ESE), Ion Geophysical Corp (NYSE:IO), II-VI, Inc. (NASDAQ:IIVI), and Analogic Corporation (NASDAQ:ALOG). This group of stocks belong to the scientific & technical instruments industry and their market caps match MTSC’s market cap.