Is it smart to be bullish on Rofin-Sinar Technologies (NASDAQ:RSTI)?
At the moment, there are dozens of methods market participants can use to track publicly traded companies. Some of the best are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can trounce the broader indices by a very impressive margin (see just how much).
Equally as necessary, optimistic insider trading activity is a second way to look at the financial markets. Obviously, there are plenty of stimuli for a corporate insider to downsize shares of his or her company, but just one, very simple reason why they would buy. Several empirical studies have demonstrated the valuable potential of this method if “monkeys” understand what to do (learn more here).
Now that that’s out of the way, we’re going to study the recent info surrounding Rofin-Sinar Technologies (NASDAQ:RSTI).
How have hedgies been trading Rofin-Sinar Technologies (NASDAQ:RSTI)?
At Q2’s end, a total of 8 of the hedge funds we track held long positions in this stock, a change of 14% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their holdings significantly.
Consequently, certain bigger names have jumped into Rofin-Sinar Technologies (NASDAQ:RSTI) headfirst. Royce & Associates, managed by Chuck Royce, initiated the biggest position in Rofin-Sinar Technologies (NASDAQ:RSTI). Royce & Associates had 51 million invested in the company at the end of the quarter. Matt McLennan’s First Eagle Investment Management also made a $46.5 million investment in the stock during the quarter. The following funds were also among the new RSTI investors: Martin Whitman’s Third Avenue Management, Mario Gabelli’s GAMCO Investors, and Joel Greenblatt’s Gotham Asset Management.
How are insiders trading Rofin-Sinar Technologies (NASDAQ:RSTI)?
Insider buying made by high-level executives is at its handiest when the company we’re looking at has experienced transactions within the past 180 days. Over the last half-year time frame, Rofin-Sinar Technologies (NASDAQ:RSTI) has seen 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 Rofin-Sinar Technologies (NASDAQ:RSTI). These stocks are Analogic Corporation (NASDAQ:ALOG), Measurement Specialties, Inc. (NASDAQ:MEAS), MTS Systems Corporation (NASDAQ:MTSC), FARO Technologies, Inc. (NASDAQ:FARO), and Badger Meter, Inc. (NYSE:BMI). This group of stocks are the members of the scientific & technical instruments industry and their market caps resemble RSTI’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Analogic Corporation (NASDAQ:ALOG) | 8 | 0 | 0 |
| Measurement Specialties, Inc. (NASDAQ:MEAS) | 8 | 0 | 0 |
| MTS Systems Corporation (NASDAQ:MTSC) | 6 | 0 | 0 |
| FARO Technologies, Inc. (NASDAQ:FARO) | 13 | 0 | 0 |
| Badger Meter, Inc. (NYSE:BMI) | 8 | 0 | 0 |
Using the returns demonstrated by Insider Monkey’s tactics, average investors must always track hedge fund and insider trading activity, and Rofin-Sinar Technologies (NASDAQ:RSTI) shareholders fit into this picture quite nicely.
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