Intel Corporation (NASDAQ:INTC) is up a little over 8% in 2013, and one indicator suggests more gains are in store.
In today’s marketplace, there are tons of gauges investors can use to watch the equity markets. A pair of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top money managers can beat the broader indices by a superb amount (see just how much).
Just as key, positive insider trading activity is another way to analyze the financial markets. There are a number of reasons for a corporate insider to sell shares of his or her company, but just one, very simple reason why they would buy. Many academic studies have demonstrated the useful potential of this tactic if “monkeys” know what to do (learn more here).
Keeping this in mind, it’s important to study the recent info for Intel Corporation (NASDAQ:INTC).
How have hedgies been trading Intel Corporation (NASDAQ:INTC)?
At the end of the second quarter, a total of 58 of the hedge funds we track were long in this stock, a change of 7% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their holdings meaningfully.
When using filings from the hedgies we track, Natixis Global Asset Management’s Harris Associates had the biggest position in Intel Corporation (NASDAQ:INTC), worth close to $1.632 billion, accounting for 3.4% of its total 13F portfolio. The second largest stake is held by First Eagle Investment Management, managed by Matt McLennan, which held a $861.9 million position; the fund has 2.6% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include Ken Fisher’s Fisher Asset Management, Jim Simons’s Renaissance Technologies and Paul Ruddock and Steve Heinz’s Lansdowne Partners.
As one would understandably expect, certain money managers have been driving this bullishness. First Eagle Investment Management, managed by Matt McLennan, created the most valuable position in Intel Corporation (NASDAQ:INTC). First Eagle Investment Management had 861.9 million invested in the company at the end of the quarter. Ken Fisher’s Fisher Asset Management also initiated a $450.9 million position during the quarter. The other funds with new positions in the stock are Jim Simons’s Renaissance Technologies, Paul Ruddockáand Steve Heinz’s Lansdowne Partners, and Kerr Neilson’s Platinum Asset Management.
How are insiders trading Intel Corporation (NASDAQ:INTC)?
Legal insider trading, particularly when it’s bullish, is most useful when the company in question has experienced transactions within the past half-year. Over the latest 180-day time frame, Intel Corporation (NASDAQ:INTC) has seen zero unique insiders purchasing, and 9 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 Intel Corporation (NASDAQ:INTC). These stocks are STMicroelectronics N.V. (ADR) (NYSE:STM), NXP Semiconductors NV (NASDAQ:NXPI), Avago Technologies Ltd (NASDAQ:AVGO), Maxim Integrated Products Inc. (NASDAQ:MXIM), and Texas Instruments Incorporated (NASDAQ:TXN). All of these stocks are in the semiconductor – broad line industry and their market caps are closest to INTC’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| STMicroelectronics N.V. (ADR) (NYSE:STM) | 11 | 0 | 0 |
| NXP Semiconductors NV (NASDAQ:NXPI) | 30 | 0 | 0 |
| Avago Technologies Ltd (NASDAQ:AVGO) | 26 | 0 | 5 |
| Maxim Integrated Products Inc. (NASDAQ:MXIM) | 22 | 0 | 7 |
| Texas Instruments Incorporated (NASDAQ:TXN) | 24 | 0 | 18 |
Using the results explained by our strategies, regular investors should always pay attention to hedge fund and insider trading sentiment, and Intel Corporation (NASDAQ:INTC) is no exception.
