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Here is What Hedge Funds Think About Integrated Device Technology, Inc. (IDTI)

What’s a smart Integrated Device Technology, Inc. (NASDAQ:IDTI) investor to do?

To the average investor, there are plenty of metrics shareholders can use to analyze the equity markets. Two of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top investment managers can outperform the market by a healthy margin (see just how much).

Just as necessary, positive insider trading sentiment is another way to analyze the marketplace. There are many incentives for a corporate insider to drop shares of his or her company, but only one, very simple reason why they would initiate a purchase. Various empirical studies have demonstrated the valuable potential of this strategy if shareholders know what to do (learn more here).

Now that that’s out of the way, it’s important to analyze the latest info surrounding Integrated Device Technology, Inc. (NASDAQ:IDTI).

How are hedge funds trading Integrated Device Technology, Inc. (NASDAQ:IDTI)?

Heading into Q3, a total of 19 of the hedge funds we track held long positions in this stock, a change of 12% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their stakes meaningfully.

Integrated Device Technology, Inc. (NASDAQ:IDTI)Out of the hedge funds we follow, Jeffrey Smith’s Starboard Value LP had the largest position in Integrated Device Technology, Inc. (NASDAQ:IDTI), worth close to $99.3 million, comprising 6.9% of its total 13F portfolio. The second largest stake is held by Legg Mason Capital Management, managed by Bill Miller, which held a $11.6 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Ken Grossman and Glen Schneider’s SG Capital Management, Brian Ashford-Russell and Tim Woolley’s Polar Capital and Ken Griffin’s Citadel Investment Group.

As aggregate interest spiked, particular hedge funds were breaking ground themselves. Starboard Value LP, managed by Jeffrey Smith, created the most outsized position in Integrated Device Technology, Inc. (NASDAQ:IDTI). Starboard Value LP had 99.3 million invested in the company at the end of the quarter. Bill Miller’s Legg Mason Capital Management also made a $11.6 million investment in the stock during the quarter. The other funds with brand new IDTI positions are Ken Grossman and Glen Schneider’s SG Capital Management, Brian Ashford-Russell and Tim Woolley’s Polar Capital, and Ken Griffin’s Citadel Investment Group.

How are insiders trading Integrated Device Technology, Inc. (NASDAQ:IDTI)?

Insider buying is at its handiest when the company we’re looking at has seen transactions within the past six months. Over the latest six-month time frame, Integrated Device Technology, Inc. (NASDAQ:IDTI) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll check out the relationship between both of these indicators in other stocks similar to Integrated Device Technology, Inc. (NASDAQ:IDTI). These stocks are Advanced Micro Devices, Inc. (NYSE:AMD), Cypress Semiconductor Corporation (NASDAQ:CY), M/A-COM Technology Solutions Holdings (NASDAQ:MTSI), Spreadtrum Communications, Inc (ADR) (NASDAQ:SPRD), and Intersil Corp (NASDAQ:ISIL). All of these stocks are in the semiconductor – broad line industry and their market caps match IDTI’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Advanced Micro Devices, Inc. (NYSE:AMD) 17 0 0
Cypress Semiconductor Corporation (NASDAQ:CY) 13 0 0
M/A-COM Technology Solutions Holdings (NASDAQ:MTSI) 4 0 0
Spreadtrum Communications, Inc (ADR) (NASDAQ:SPRD) 12 0 0
Intersil Corp (NASDAQ:ISIL) 7 0 0

Using the returns shown by the previously mentioned research, average investors must always watch hedge fund and insider trading sentiment, and Integrated Device Technology, Inc. (NASDAQ:IDTI) shareholders fit into this picture quite nicely.

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