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Should You Buy IPG Photonics Corporation (IPGP)?

What’s a smart IPG Photonics Corporation (NASDAQ:IPGP) investor to do?

In the financial world, there are a multitude of gauges investors can use to monitor the equity markets. A duo of the most useful are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite money managers can outclass the broader indices by a solid margin (see just how much).

Equally as crucial, bullish insider trading activity is a second way to look at the investments you’re interested in. Just as you’d expect, there are a number of incentives for a bullish insider to downsize shares of his or her company, but only one, very clear reason why they would buy. Several empirical studies have demonstrated the useful potential of this strategy if shareholders know what to do (learn more here).

Furthermore, it’s important to discuss the latest info about IPG Photonics Corporation (NASDAQ:IPGP).

IPG Photonics Corporation (NASDAQ:IPGP)

How have hedgies been trading IPG Photonics Corporation (NASDAQ:IPGP)?

At Q2’s end, a total of 16 of the hedge funds we track were bullish in this stock, a change of 33% from the previous quarter. With hedgies’ sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their holdings significantly.

Out of the hedge funds we follow, Royce & Associates, managed by Chuck Royce, holds the most valuable position in IPG Photonics Corporation (NASDAQ:IPGP). Royce & Associates has a $85.7 million position in the stock, comprising 0.3% of its 13F portfolio. On Royce & Associates’s heels is Adage Capital Management, managed by Phill Gross and Robert Atchinson, which held a $15.9 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include David Gallo’s Valinor Management LLC, Ken Fisher’s Fisher Asset Management and Ken Grossman and Glen Schneider’s SG Capital Management.

As one would understandably expect, particular hedge funds were leading the bulls’ herd. Royce & Associates, managed by Chuck Royce, initiated the most valuable position in IPG Photonics Corporation (NASDAQ:IPGP). Royce & Associates had 85.7 million invested in the company at the end of the quarter. Phill Gross and Robert Atchinson’s Adage Capital Management also made a $15.9 million investment in the stock during the quarter. The following funds were also among the new IPGP investors: David Gallo’s Valinor Management LLC, Ken Fisher’s Fisher Asset Management, and Ken Grossman and Glen Schneider’s SG Capital Management.

How are insiders trading IPG Photonics Corporation (NASDAQ:IPGP)?

Insider buying is particularly usable when the company in focus has seen transactions within the past 180 days. Over the last 180-day time period, IPG Photonics Corporation (NASDAQ:IPGP) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also take a look at the relationship between both of these indicators in other stocks similar to IPG Photonics Corporation (NASDAQ:IPGP). These stocks are Hittite Microwave Corp (NASDAQ:HITT), Marvell Technology Group Ltd. (NASDAQ:MRVL), Microsemi Corporation (NASDAQ:MSCC), Semtech Corporation (NASDAQ:SMTC), and Skyworks Solutions Inc (NASDAQ:SWKS). All of these stocks are in the semiconductor – integrated circuits industry and their market caps are closest to IPGP’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Hittite Microwave Corp (NASDAQ:HITT) 9 0 0
Marvell Technology Group Ltd. (NASDAQ:MRVL) 31 0 0
Microsemi Corporation (NASDAQ:MSCC) 9 0 0
Semtech Corporation (NASDAQ:SMTC) 14 0 0
Skyworks Solutions Inc (NASDAQ:SWKS) 22 0 0

Using the results shown by our studies, average investors should always track hedge fund and insider trading sentiment, and IPG Photonics Corporation (NASDAQ:IPGP) shareholders fit into this picture quite nicely.

Discover how hedge fund piggybacking can benefit you

Recommended Reading:

LinkedIn Corp (LNKD), 3D Systems Corporation (DDD), IPG Photonics Corporation (IPGP): Looking for a Tech Stock? Check Out Forbes’ “Fastest Growing Tech Companies”

Cirrus Logic, Inc. (CRUS), IPG Photonics Corporation (IPGP), KLA-Tencor Corporation (KLAC): The Four Best Electronics Stocks for Your Money

IPG Photonics Corporation (IPGP): Insiders Aren’t Crazy About It

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