Should You Avoid TESSCO Technologies, Inc. (TESS)?

TESSCO Technologies, Inc. (NASDAQ:TESS) was in 4 hedge funds’ portfolio at the end of March. TESS has experienced a decrease in hedge fund sentiment in recent months. There were 4 hedge funds in our database with TESS positions at the end of the previous quarter.

In the financial world, there are plenty of methods market participants can use to analyze Mr. Market. A duo 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 elite fund managers can trounce the S&P 500 by a superb amount (see just how much).

Equally as beneficial, optimistic insider trading sentiment is another way to break down the marketplace. As the old adage goes: there are many motivations for a bullish insider to drop shares of his or her company, but only one, very simple reason why they would initiate a purchase. Many empirical studies have demonstrated the useful potential of this method if piggybackers know what to do (learn more here).

With these “truths” under our belt, we’re going to take a glance at the key action surrounding TESSCO Technologies, Inc. (NASDAQ:TESS).

How have hedgies been trading TESSCO Technologies, Inc. (NASDAQ:TESS)?

Heading into Q2, a total of 4 of the hedge funds we track were long in this stock, a change of 0% from the previous quarter.

Because TESSCO Technologies, Inc. (NASDAQ:TESS) has faced declining sentiment from the aggregate hedge fund industry, logic holds that there exists a select few funds that decided to sell off their positions entirely at the end of the first quarter. Interestingly, Andy Redleaf’s Whitebox Advisors cut the biggest position of the 450+ funds we watch, worth close to $0.2 million in stock. These bearish behaviors are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

How have insiders been trading TESSCO Technologies, Inc. (NASDAQ:TESS)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company we’re looking at has experienced transactions within the past 180 days. Over the latest half-year time frame, TESSCO Technologies, Inc. (NASDAQ:TESS) has experienced zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to TESSCO Technologies, Inc. (NASDAQ:TESS). These stocks are Anixter International Inc. (NYSE:AXE), ADDvantage Technologies Group, Inc. (NASDAQ:AEY), Ituran Location and Control Ltd. (US) (NASDAQ:ITRN), VOXX International Corp (NASDAQ:VOXX), and Richardson Electronics, Ltd. (NASDAQ:RELL). This group of stocks belong to the electronics wholesale industry and their market caps match TESS’s market cap.