Is Maxim Integrated Products Inc. (NASDAQ:MXIM) ready to rally soon? The best stock pickers are selling. The number of bullish hedge fund positions went down by 2 recently.
In today’s marketplace, there are plenty of metrics market participants can use to analyze the equity markets. A couple of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can trounce the broader indices by a solid amount (see just how much).
Just as beneficial, positive insider trading sentiment is another way to break down the investments you’re interested in. There are many reasons for a bullish insider to get rid of shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Various empirical studies have demonstrated the useful potential of this tactic if shareholders understand where to look (learn more here).
Keeping this in mind, let’s take a look at the recent action encompassing Maxim Integrated Products Inc. (NASDAQ:MXIM).
How have hedgies been trading Maxim Integrated Products Inc. (NASDAQ:MXIM)?
Heading into Q2, a total of 14 of the hedge funds we track were long in this stock, a change of -13% from one quarter earlier. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were upping their stakes meaningfully.
Of the funds we track, Citadel Investment Group, managed by Ken Griffin, holds the largest position in Maxim Integrated Products Inc. (NASDAQ:MXIM). Citadel Investment Group has a $198.3 million position in the stock, comprising 0.3% of its 13F portfolio. The second largest stake is held by Peter Rathjens, Bruce Clarke and John Campbell of Arrowstreet Capital, with a $110.9 million position; 0.9% of its 13F portfolio is allocated to the stock. Other hedge funds that are bullish include Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Jim Simons’s Renaissance Technologies and Cliff Asness’s AQR Capital Management.
Seeing as Maxim Integrated Products Inc. (NASDAQ:MXIM) has witnessed bearish sentiment from hedge fund managers, it’s safe to say that there were a few fund managers that elected to cut their entire stakes at the end of the first quarter. At the top of the heap, David Costen Haley’s HBK Investments said goodbye to the biggest investment of the “upper crust” of funds we monitor, valued at close to $0.5 million in stock., and John Fichthorn of Dialectic Capital Management was right behind this move, as the fund said goodbye to about $0.3 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 2 funds at the end of the first quarter.
What have insiders been doing with Maxim Integrated Products Inc. (NASDAQ:MXIM)?
Insider purchases made by high-level executives is most useful when the primary stock in question has seen transactions within the past six months. Over the last half-year time period, Maxim Integrated Products Inc. (NASDAQ:MXIM) has experienced zero unique insiders buying, and 13 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Maxim Integrated Products Inc. (NASDAQ:MXIM). These stocks are Freescale Semiconductor Ltd (NYSE:FSL), AU Optronics Corp. (ADR) (NYSE:AUO), STMicroelectronics N.V. (ADR) (NYSE:STM), NXP Semiconductors NV (NASDAQ:NXPI), and Avago Technologies Ltd (NASDAQ:AVGO). This group of stocks are the members of the semiconductor – broad line industry and their market caps match MXIM’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Freescale Semiconductor Ltd (NYSE:FSL) | 18 | 0 | 9 |
| AU Optronics Corp. (ADR) (NYSE:AUO) | 6 | 0 | 0 |
| STMicroelectronics N.V. (ADR) (NYSE:STM) | 9 | 0 | 0 |
| NXP Semiconductors NV (NASDAQ:NXPI) | 41 | 0 | 0 |
| Avago Technologies Ltd (NASDAQ:AVGO) | 28 | 0 | 8 |
With the results demonstrated by our strategies, retail investors must always pay attention to hedge fund and insider trading sentiment, and Maxim Integrated Products Inc. (NASDAQ:MXIM) applies perfectly to this mantra.
