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Just as necessary, positive insider trading sentiment is another way to analyze the world of equities. Obviously, there are many stimuli for a corporate insider to drop shares of his or her company, but only one, very clear reason why they would buy. Several empirical studies have demonstrated the market-beating potential of this method if investors understand what to do (learn more here).
Thus, it’s important to examine the newest info for Infinera Corp. (NASDAQ:INFN).
What have hedge funds been doing with Infinera Corp. (NASDAQ:INFN)?
Heading into Q3, a total of 12 of the hedge funds we track were bullish in this stock, a change of 50% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were increasing their holdings considerably.
According to our 13F database, Platinum Asset Management, managed by Kerr Neilson, holds the largest position in Infinera Corp. (NASDAQ:INFN). Platinum Asset Management has a $46.4 million position in the stock, comprising 0.9% of its 13F portfolio. Sitting at the No. 2 spot is Royce & Associates, managed by Chuck Royce, which held a $29 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining hedge funds with similar optimism include Drew Cupps’s Cupps Capital Management, Jim Simons’s Renaissance Technologies and Brian Ashford-Russell and Tim Woolley’s Polar Capital.
As aggregate interest spiked, specific money managers were leading the bulls’ herd. Platinum Asset Management, managed by Kerr Neilson, established the most outsized position in Infinera Corp. (NASDAQ:INFN). Platinum Asset Management had 46.4 million invested in the company at the end of the quarter. Chuck Royce’s Royce & Associates also made a $29 million investment in the stock during the quarter. The other funds with brand new INFN positions are Drew Cupps’s Cupps Capital Management, Jim Simons’s Renaissance Technologies, and Brian Ashford-Russell and Tim Woolley’s Polar Capital.
What have insiders been doing with Infinera Corp. (NASDAQ:INFN)?
Insider buying is most useful when the primary stock in question has seen transactions within the past half-year. Over the latest 180-day time frame, Infinera Corp. (NASDAQ:INFN) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Infinera Corp. (NASDAQ:INFN). These stocks are ADTRAN, Inc. (NASDAQ:ADTN), Vocera Communications Inc (NYSE:VCRA), Harmonic Inc (NASDAQ:HLIT), Sonus Networks, Inc. (NASDAQ:SONS), and Tellabs, Inc. (NASDAQ:TLAB). This group of stocks belong to the communication equipment industry and their market caps are closest to INFN’s market cap.