Is Audience Inc (NASDAQ:ADNC) undervalued? Hedge funds are betting on the stock. The number of long hedge fund bets advanced by 1 in recent months.
In the financial world, there are dozens of indicators market participants can use to monitor the equity markets. A pair of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best investment managers can trounce their index-focused peers by a superb margin (see just how much).
Just as important, bullish insider trading sentiment is a second way to parse down the investments you’re interested in. Just as you’d expect, there are plenty of stimuli for an executive to downsize shares of his or her company, but just one, very simple reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the market-beating potential of this method if shareholders know what to do (learn more here).
With all of this in mind, we’re going to take a look at the latest action regarding Audience Inc (NASDAQ:ADNC).
What does the smart money think about Audience Inc (NASDAQ:ADNC)?
In preparation for this quarter, a total of 8 of the hedge funds we track held long positions in this stock, a change of 14% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes substantially.
Of the funds we track, Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management had the largest position in Audience Inc (NASDAQ:ADNC), worth close to $13 million, accounting for 2.1% of its total 13F portfolio. Sitting at the No. 2 spot is Becker Drapkin Management, managed by Matthew Drapkin and Steven R. Becker, which held a $3.7 million position; the fund has 2.4% of its 13F portfolio invested in the stock. Other peers with similar optimism include Jim Simons’s Renaissance Technologies, Chuck Royce’s Royce & Associates and Stuart Peterson’s Artis Capital Management.
With a general bullishness amongst the heavyweights, key hedge funds have jumped into Audience Inc (NASDAQ:ADNC) headfirst. Artis Capital Management, managed by Stuart Peterson, assembled the most outsized position in Audience Inc (NASDAQ:ADNC). Artis Capital Management had 0.7 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also initiated a $0.4 million position during the quarter. The following funds were also among the new ADNC investors: Mike Vranos’s Ellington and Paul Tudor Jones’s Tudor Investment Corp.
How have insiders been trading Audience Inc (NASDAQ:ADNC)?
Insider buying is at its handiest when the company in question has seen transactions within the past half-year. Over the last half-year time period, Audience Inc (NASDAQ:ADNC) has experienced 1 unique insiders purchasing, and 8 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Audience Inc (NASDAQ:ADNC). These stocks are Volterra Semiconductor Corporation (NASDAQ:VLTR), Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE), Peregrine Semiconductor Corp (NASDAQ:PSMI), Oplink Communications, Inc (NASDAQ:OPLK), and ParkerVision, Inc. (NASDAQ:PRKR). This group of stocks are in the semiconductor – integrated circuits industry and their market caps match ADNC’s market cap.