Is it smart to be bullish on Nam Tai Electronics, Inc. (NYSE:NTE)?
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Equally as crucial, bullish insider trading activity is a second way to look at the world of equities. There are plenty of stimuli for an executive to get rid of shares of his or her company, but only one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the market-beating potential of this tactic if shareholders know what to do (learn more here).
Thus, it’s important to study the recent info surrounding Nam Tai Electronics, Inc. (NYSE:NTE).
What have hedge funds been doing with Nam Tai Electronics, Inc. (NYSE:NTE)?
In preparation for the third quarter, a total of 13 of the hedge funds we track held long positions in this stock, a change of -7% from the previous quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were boosting their holdings considerably.
When using filings from the hedgies we track, Kahn Brothers, managed by Irving Kahn, holds the biggest position in Nam Tai Electronics, Inc. (NYSE:NTE). Kahn Brothers has a $20.9 million position in the stock, comprising 3.2% of its 13F portfolio. The second largest stake is held by Jim Simons of Renaissance Technologies, with a $8.9 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other peers that are bullish include Chuck Royce’s Royce & Associates, Ken Griffin’s Citadel Investment Group and Israel Englander’s Millennium Management.
Because Nam Tai Electronics, Inc. (NYSE:NTE) has faced a fall in interest from upper-tier hedge fund managers, it’s safe to say that there was a specific group of hedge funds that slashed their full holdings last quarter. Intriguingly, Scott Fine and Peter Richards’s Empire Capital Management said goodbye to the largest position of all the hedgies we monitor, worth about $8.4 million in stock, and John Overdeck and David Siegel of Two Sigma Advisors was right behind this move, as the fund sold off about $0.3 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest fell by 1 funds last quarter.
What do corporate executives and insiders think about Nam Tai Electronics, Inc. (NYSE:NTE)?
Insider buying made by high-level executives is particularly usable when the primary stock in question has seen transactions within the past six months. Over the last half-year time period, Nam Tai Electronics, Inc. (NYSE:NTE) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Nam Tai Electronics, Inc. (NYSE:NTE). These stocks are Orbotech Ltd. (NASDAQ:ORBK), Methode Electronics Inc. (NYSE:MEI), Power One Inc (NASDAQ:PWER), Encore Wire Corporation (NASDAQ:WIRE), and Advanced Energy Industries, Inc. (NASDAQ:AEIS). This group of stocks belong to the diversified electronics industry and their market caps are similar to NTE’s market cap.