Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

National Instruments Corp (NATI): Hedge Funds and Insiders Are Bullish, What Should You Do?

Page 1 of 2

Is National Instruments Corp (NASDAQ:NATI) a healthy stock for your portfolio? Money managers are getting more optimistic. The number of long hedge fund positions improved by 1 lately.

National Instruments Corp (NASDAQ:NATI)

In the eyes of most shareholders, hedge funds are viewed as worthless, old financial tools of the past. While there are more than 8000 funds with their doors open today, we choose to focus on the leaders of this group, about 450 funds. Most estimates calculate that this group oversees the majority of the hedge fund industry’s total capital, and by keeping an eye on their best investments, we have found a few investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 24 percentage points in 7 months (explore the details and some picks here).

Equally as important, optimistic insider trading sentiment is another way to parse down the investments you’re interested in. As the old adage goes: there are lots of incentives for an upper level exec to sell shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the valuable potential of this strategy if piggybackers know where to look (learn more here).

Keeping this in mind, let’s take a glance at the key action regarding National Instruments Corp (NASDAQ:NATI).

What have hedge funds been doing with National Instruments Corp (NASDAQ:NATI)?

At the end of the fourth quarter, a total of 8 of the hedge funds we track were bullish in this stock, a change of 14% from the third quarter. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were boosting their stakes considerably.

Of the funds we track, Chuck Royce’s Royce & Associates had the largest position in National Instruments Corp (NASDAQ:NATI), worth close to $160.8 million, accounting for 0.5% of its total 13F portfolio. On Royce & Associates’s heels is Citadel Investment Group, managed by Ken Griffin, which held a $9.4 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other peers with similar optimism include Ken Grossman and Glen Schneider’s SG Capital Management, Brian Ashford-Russell and Tim Woolley’s Polar Capital and D. E. Shaw’s D E Shaw.

As one would reasonably expect, key hedge funds have jumped into National Instruments Corp (NASDAQ:NATI) headfirst. SG Capital Management, managed by Ken Grossman and Glen Schneider, established the largest position in National Instruments Corp (NASDAQ:NATI). SG Capital Management had 4.7 million invested in the company at the end of the quarter. Brian Ashford-Russell and Tim Woolley’s Polar Capital also initiated a $4.2 million position during the quarter.

What have insiders been doing with National Instruments Corp (NASDAQ:NATI)?

Bullish insider trading is particularly usable when the company in focus has experienced transactions within the past half-year. Over the latest six-month time period, National Instruments Corp (NASDAQ:NATI) has seen 1 unique insiders buying, and 4 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to National Instruments Corp (NASDAQ:NATI). These stocks are ACI Worldwide Inc (NASDAQ:ACIW), Mentor Graphics Corp (NASDAQ:MENT), ANSYS, Inc. (NASDAQ:ANSS), PTC Inc (NASDAQ:PMTC), and Concur Technologies, Inc. (NASDAQ:CNQR). All of these stocks are in the technical & system software industry and their market caps are similar to NATI’s market cap.

Page 1 of 2
Loading Comments...