This Metric Says You Are Smart to Buy Key Tronic Corporation (KTCC)

Is Key Tronic Corporation (NASDAQ:KTCC) a buy, sell, or hold? The smart money is taking an optimistic view. The number of long hedge fund positions advanced by 1 recently.

In the financial world, there are dozens of methods investors can use to analyze publicly traded companies. Two 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 top money managers can outpace the market by a superb margin (see just how much).

Key Tronic Corporation (NASDAQ:KTCC)

Just as key, bullish insider trading activity is a second way to break down the financial markets. Just as you’d expect, there are a number of incentives for a corporate insider to get rid of shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Plenty of academic studies have demonstrated the impressive potential of this method if piggybackers understand what to do (learn more here).

Keeping this in mind, it’s important to take a look at the recent action encompassing Key Tronic Corporation (NASDAQ:KTCC).

Hedge fund activity in Key Tronic Corporation (NASDAQ:KTCC)

At Q1’s end, a total of 5 of the hedge funds we track were long in this stock, a change of 25% from the previous quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were boosting their holdings meaningfully.

According to our comprehensive database, Chuck Royce’s Royce & Associates had the biggest position in Key Tronic Corporation (NASDAQ:KTCC), worth close to $8 million, accounting for less than 0.1%% of its total 13F portfolio. Coming in second is Driehaus Capital, managed by Richard Driehaus, which held a $2.5 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining hedgies that are bullish include Phil Frohlich’s Prescott Group Capital Management, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors and John Overdeck and David Siegel’s Two Sigma Advisors.

With a general bullishness amongst the heavyweights, specific money managers were leading the bulls’ herd. Royce & Associates, managed by Chuck Royce, created the biggest position in Key Tronic Corporation (NASDAQ:KTCC). Royce & Associates had 8 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also initiated a $0.2 million position during the quarter.

What do corporate executives and insiders think about Key Tronic Corporation (NASDAQ:KTCC)?

Insider buying is best served when the company in focus has experienced transactions within the past half-year. Over the last six-month time frame, Key Tronic Corporation (NASDAQ:KTCC) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

With the results shown by the aforementioned strategies, everyday investors should always monitor hedge fund and insider trading activity, and Key Tronic Corporation (NASDAQ:KTCC) is no exception.

Click here to learn why you should track hedge funds