This Metric Says You Are Smart to Sell Stratasys, Ltd. (SSYS)

Page 1 of 2

Stratasys, Ltd. (NASDAQ:SSYS) has experienced a decrease in enthusiasm from smart money of late.

Stratasys, Ltd. (NASDAQ:SSYS)According to most market participants, hedge funds are viewed as worthless, outdated investment vehicles of the past. While there are more than 8000 funds in operation today, we hone in on the leaders of this club, around 450 funds. It is widely believed that this group controls the majority of the smart money’s total capital, and by monitoring their top investments, we have revealed a number of investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).

Equally as key, optimistic insider trading sentiment is another way to break down the financial markets. There are a number of incentives for an insider to cut shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several empirical studies have demonstrated the useful potential of this tactic if shareholders understand where to look (learn more here).

Keeping this in mind, it’s important to take a glance at the latest action regarding Stratasys, Ltd. (NASDAQ:SSYS).

What does the smart money think about Stratasys, Ltd. (NASDAQ:SSYS)?

At the end of the first quarter, a total of 12 of the hedge funds we track held long positions in this stock, a change of 0% from one quarter earlier. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were boosting their holdings meaningfully.

When looking at the hedgies we track, Chase Coleman and Feroz Dewan’s Tiger Global Management LLC had the most valuable position in Stratasys, Ltd. (NASDAQ:SSYS), worth close to $96.5 million, comprising 1.5% of its total 13F portfolio. Sitting at the No. 2 spot is Royce & Associates, managed by Chuck Royce, which held a $21.5 million position; 0.1% of its 13F portfolio is allocated to the company. Other peers with similar optimism include Drew Cupps’s Cupps Capital Management, Richard Driehaus’s Driehaus Capital and Ken Griffin’s Citadel Investment Group.

Since Stratasys, Ltd. (NASDAQ:SSYS) has faced bearish sentiment from the aggregate hedge fund industry, we can see that there was a specific group of funds that elected to cut their full holdings at the end of the first quarter. Interestingly, D. E. Shaw’s D E Shaw said goodbye to the largest position of all the hedgies we key on, worth an estimated $3.2 million in call options. Ken Griffin’s fund, Citadel Investment Group, also dropped its stock, about $1.7 million worth. These moves are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

What do corporate executives and insiders think about Stratasys, Ltd. (NASDAQ:SSYS)?

Bullish insider trading is at its handiest when the company we’re looking at has seen transactions within the past six months. Over the latest 180-day time period, Stratasys, Ltd. (NASDAQ:SSYS) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Stratasys, Ltd. (NASDAQ:SSYS). These stocks are Electronics For Imaging, Inc. (NASDAQ:EFII), Logitech International SA (USA) (NASDAQ:LOGI), Synaptics, Incorporated (NASDAQ:SYNA), Universal Display Corporation (NASDAQ:PANL), and Nice Systems Ltd (ADR) (NASDAQ:NICE). This group of stocks belong to the computer peripherals industry and their market caps resemble SSYS’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 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

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

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!