Is Synaptics, Incorporated (SYNA) A Good Stock To Buy?

Seeing as Synaptics, Incorporated (NASDAQ:SYNA) has witnessed bearish sentiment from the smart money, it’s easy to see that there exists a select few money managers that decided to sell off their positions entirely in the third quarter. It’s worth mentioning that Mark Kingdon’s Kingdon Capital cut the largest stake of the 700 funds tracked by Insider Monkey, comprising about $23.5 million in stock. Amy Minella’s fund, Cardinal Capital, also cut its stock, about $15.5 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 4 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Synaptics, Incorporated (NASDAQ:SYNA) but similarly valued. We will take a look at EnLink Midstream LLC (NYSE:ENLC), ITT Corp (NYSE:ITT), Methanex Corporation (USA) (NASDAQ:MEOH), and Cognex Corporation (NASDAQ:CGNX). This group of stocks’ market values are closest to SYNA’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ENLC 10 58533 -1
ITT 27 277938 -3
MEOH 19 229003 -3
CGNX 14 127632 -8

As you can see these stocks had an average of 17.5 hedge funds with bullish positions and the average amount invested in these stocks was $173 million. That figure was $116 million in SYNA’s case. ITT Corp (NYSE:ITT) is the most popular stock in this table. On the other hand EnLink Midstream LLC (NYSE:ENLC) is the least popular one with only 10 bullish hedge fund positions. Synaptics, Incorporated (NASDAQ:SYNA) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ITT might be a better candidate to consider a long position.