Is LSI Corp (NASDAQ:LSI) a buy?
In the financial world, there are dozens of methods market participants can use to watch publicly traded companies. A pair of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite investment managers can outperform the broader indices by a healthy margin (see just how much).
Equally as useful, positive insider trading activity is another way to analyze the marketplace. There are many reasons for a bullish insider to sell shares of his or her company, but only one, very simple reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this strategy if “monkeys” know where to look (learn more here).
What’s more, it’s important to analyze the recent info for LSI Corp (NASDAQ:LSI).
Hedge fund activity in LSI Corp (NASDAQ:LSI)
Heading into Q3, a total of 28 of the hedge funds we track were long in this stock, a change of 27% from the previous quarter. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their stakes meaningfully.
Out of the hedge funds we follow, David Cohen and Harold Levy’s Iridian Asset Management had the largest position in LSI Corp (NASDAQ:LSI), worth close to $189.1 million, accounting for 2.4% of its total 13F portfolio. The second largest stake is held by Citadel Investment Group, managed by Ken Griffin, which held a $136.4 million position; 0.2% of its 13F portfolio is allocated to the company. Some other hedge funds with similar optimism include Peter Rathjens Bruce Clarke and John Campbell’s Arrowstreet Capital, D. E. Shaw’s D E Shaw and Cliff Asness’s AQR Capital Management.
As one would understandably expect, certain money managers have been driving this bullishness. Iridian Asset Management, managed by David Cohen and Harold Levy, established the biggest position in LSI Corp (NASDAQ:LSI). Iridian Asset Management had 189.1 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $136.4 million position during the quarter. The other funds with new positions in the stock are Peter Rathjens Bruce Clarke and John Campbell’s Arrowstreet Capital, D. E. Shaw’s D E Shaw, and Cliff Asness’s AQR Capital Management.
What do corporate executives and insiders think about LSI Corp (NASDAQ:LSI)?
Insider buying is most useful when the primary stock in question has experienced transactions within the past half-year. Over the last half-year time frame, LSI Corp (NASDAQ:LSI) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to LSI Corp (NASDAQ:LSI). These stocks are Silicon Laboratories (NASDAQ:SLAB), NVIDIA Corporation (NASDAQ:NVDA), SunPower Corporation (NASDAQ:SPWR), Microchip Technology Inc. (NASDAQ:MCHP), and First Solar, Inc. (NASDAQ:FSLR). All of these stocks are in the semiconductor – specialized industry and their market caps are similar to LSI’s market cap.