Microchip Technology Inc. (MCHP): What Smart Money Thinks about This Stock?

On the other hand, there also was a group of money managers that decided to sell off their full holdings last quarter. Interestingly, Joel Greenblatt’s Gotham Asset Management said goodbye to the biggest investment of all the hedgies watched by Insider Monkey, totaling about $13.1 million in stock. Israel Englander’s fund, Millennium Management, also dumped its stock, about $3.7 million worth.

Let’s now review hedge fund activity in other stocks similar to Microchip Technology Inc. (NASDAQ:MCHP). We will take a look at Alcoa Inc (NYSE:AA), Henry Schein, Inc. (NASDAQ:HSIC), American Water Works Co., Inc. (NYSE:AWK), and Citrix Systems, Inc. (NASDAQ:CTXS). All of these stocks’ market caps are closest to MCHP’s market cap.

As you can see these stocks had an average of 30 funds with bullish positions and the average amount invested in these stocks was $1.14 billion. That figure was $295 million in MCHP’s case. Citrix Systems, Inc. (NASDAQ:CTXS) is the most popular stock in this table. On the other hand Henry Schein, Inc. (NASDAQ:HSIC) is the least popular one with only 23 bullish hedge fund positions. Compared to these stocks Microchip Technology Inc. (NASDAQ:MCHP) is even less popular than Henry Schein, Inc. (NASDAQ:HSIC). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: none