Entropic Communications, Inc. (NASDAQ:ENTR) has seen a decrease in support from the world’s most elite money managers recently.
In the financial world, there are dozens of gauges shareholders can use to track publicly traded companies. A duo of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can outpace the market by a significant amount (see just how much).
Equally as important, optimistic insider trading sentiment is a second way to parse down the investments you’re interested in. Just as you’d expect, there are a number of reasons for a bullish insider to cut shares of his or her company, but only one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this tactic if piggybackers understand where to look (learn more here).
Now, we’re going to take a glance at the latest action encompassing Entropic Communications, Inc. (NASDAQ:ENTR).
What have hedge funds been doing with Entropic Communications, Inc. (NASDAQ:ENTR)?
At year’s end, a total of 9 of the hedge funds we track held long positions in this stock, a change of -18% from the previous quarter. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were upping their holdings meaningfully.
When looking at the hedgies we track, Thomas E. Claugus’s GMT Capital had the biggest position in Entropic Communications, Inc. (NASDAQ:ENTR), worth close to $13.8 million, accounting for 0.3% of its total 13F portfolio. Sitting at the No. 2 spot is Robert B. Gillam of McKinley Capital Management, with a $1.2 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Joel Greenblatt’s Gotham Asset Management, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.
Due to the fact that Entropic Communications, Inc. (NASDAQ:ENTR) has experienced a declination in interest from hedge fund managers, it’s safe to say that there were a few hedge funds who sold off their full holdings in Q4. It’s worth mentioning that Israel Englander’s Millennium Management cut the largest stake of the “upper crust” of funds we watch, worth an estimated $2.5 million in stock.. Brian Taylor’s fund, Pine River Capital Management, also cut its stock, about $1.2 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 2 funds in Q4.
How have insiders been trading Entropic Communications, Inc. (NASDAQ:ENTR)?
Insider purchases made by high-level executives is most useful when the primary stock in question has seen transactions within the past half-year. Over the last 180-day time period, Entropic Communications, Inc. (NASDAQ:ENTR) has seen 6 unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Entropic Communications, Inc. (NASDAQ:ENTR). These stocks are M/A-COM Technology Solutions Holdings (NASDAQ:MTSI), Kopin Corporation (NASDAQ:KOPN), FormFactor, Inc. (NASDAQ:FORM), Inphi Corporation (NYSE:IPHI), and Silicon Image, Inc. (NASDAQ:SIMG). This group of stocks are in the semiconductor – broad line industry and their market caps are closest to ENTR’s market cap.