Is Symmetricom, Inc. (NASDAQ:SYMM) a buy right now? The best stock pickers are betting on the stock. The number of long hedge fund bets advanced by 1 lately.
To most stock holders, hedge funds are perceived as worthless, outdated financial vehicles of yesteryear. While there are over 8000 funds trading at present, we at Insider Monkey choose to focus on the moguls of this club, around 450 funds. It is estimated that this group has its hands on most of all hedge funds’ total asset base, and by tracking their top stock picks, we have uncovered a number of investment strategies that have historically outpaced the S&P 500 index. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 24 percentage points in 7 months (see the details here).
Equally as key, optimistic insider trading activity is a second way to parse down the stock market universe. As the old adage goes: there are a number of reasons for an upper level exec to cut shares of his or her company, but just one, very simple reason why they would behave bullishly. Various empirical studies have demonstrated the market-beating potential of this tactic if “monkeys” know where to look (learn more here).
Consequently, let’s take a peek at the latest action surrounding Symmetricom, Inc. (NASDAQ:SYMM).
Hedge fund activity in Symmetricom, Inc. (NASDAQ:SYMM)
In preparation for this year, a total of 10 of the hedge funds we track were long in this stock, a change of 11% from the third quarter. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were upping their holdings meaningfully.
Of the funds we track, David Einhorn’s Greenlight Capital had the biggest position in Symmetricom, Inc. (NASDAQ:SYMM), worth close to $10 million, comprising 0.2% of its total 13F portfolio. On Greenlight Capital’s heels is Chuck Royce of Royce & Associates, with a $8 million position; the fund has 0% of its 13F portfolio invested in the stock. Remaining peers that are bullish include Jim Simons’s Renaissance Technologies, Brian Ashford-Russell and Tim Woolley’s Polar Capital and D. E. Shaw’s D E Shaw.
Consequently, key hedge funds were leading the bulls’ herd. McKinley Capital Management, managed by Robert B. Gillam, assembled the most valuable position in Symmetricom, Inc. (NASDAQ:SYMM). McKinley Capital Management had 1 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0 million position during the quarter.
What do corporate executives and insiders think about Symmetricom, Inc. (NASDAQ:SYMM)?
Insider trading activity, especially when it’s bullish, is at its handiest when the primary stock in question has experienced transactions within the past 180 days. Over the latest half-year time frame, Symmetricom, Inc. (NASDAQ:SYMM) has experienced zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Symmetricom, Inc. (NASDAQ:SYMM). These stocks are Ceragon Networks Ltd. (NASDAQ:CRNT), ShoreTel, Inc. (NASDAQ:SHOR), Mitel Networks Corporation (NASDAQ:MITL), Aviat Networks Inc (NASDAQ:AVNW), and KVH Industries, Inc. (NASDAQ:KVHI). This group of stocks belong to the communication equipment industry and their market caps resemble SYMM’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Ceragon Networks Ltd. (NASDAQ:CRNT) | 5 | 0 | 0 |
| ShoreTel, Inc. (NASDAQ:SHOR) | 7 | 0 | 1 |
| Mitel Networks Corporation (NASDAQ:MITL) | 3 | 0 | 0 |
| Aviat Networks Inc (NASDAQ:AVNW) | 18 | 0 | 1 |
| KVH Industries, Inc. (NASDAQ:KVHI) | 5 | 0 | 2 |
With the results demonstrated by the aforementioned research, everyday investors should always monitor hedge fund and insider trading sentiment, and Symmetricom, Inc. (NASDAQ:SYMM) is no exception.
