Do Hedge Funds and Insiders Love Analog Devices, Inc. (NASDAQ:ADI)?

Analog Devices, Inc. (NASDAQ:ADI) has experienced an increase in support from the world’s most elite money managers lately.

In the 21st century investor’s toolkit, there are plenty of methods market participants can use to monitor their holdings. A duo of the most under-the-radar 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 elite money managers can outclass their index-focused peers by a superb amount (see just how much).

Just as key, positive insider trading sentiment is another way to parse down the investments you’re interested in. There are a variety of reasons for an executive to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Many empirical studies have demonstrated the useful potential of this strategy if you understand where to look (learn more here).

Consequently, let’s take a peek at the latest action encompassing Analog Devices, Inc. (NASDAQ:ADI).

What does the smart money think about Analog Devices, Inc. (NASDAQ:ADI)?

In preparation for this year, a total of 21 of the hedge funds we track held long positions in this stock, a change of 5% from the previous quarter. With hedgies’ sentiment swirling, there exists a select group of key hedge fund managers who were upping their holdings considerably.

According to our comprehensive database, Cantillon Capital Management, managed by William Von Mueffling, holds the biggest position in Analog Devices, Inc. (NASDAQ:ADI). Cantillon Capital Management has a $260 million position in the stock, comprising 9.8% of its 13F portfolio. Sitting at the No. 2 spot is Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, which held a $155 million position; 0.8% of its 13F portfolio is allocated to the company. Some other hedgies that hold long positions include Jim Simons’s Renaissance Technologies, Panayotis ï¾�Takisï¾� Sparaggis’s Alkeon Capital Management and Steven Cohen’s SAC Capital Advisors.

As one would reasonably expect, key money managers were leading the bulls’ herd. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, initiated the largest position in Analog Devices, Inc. (NASDAQ:ADI). Arrowstreet Capital had 155 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also initiated a $47 million position during the quarter. The following funds were also among the new ADI investors: Donald Chiboucis’s Columbus Circle Investors, Christopher Lord’s Criterion Capital, and Brian Ashford-Russell and Tim Woolley’s Polar Capital.

Insider trading activity in Analog Devices, Inc. (NASDAQ:ADI)

Insider trading activity, especially when it’s bullish, is most useful when the company we’re looking at has seen transactions within the past half-year. Over the latest 180-day time frame, Analog Devices, Inc. (NASDAQ:ADI) has experienced zero unique insiders buying, and 12 insider sales (see the details of insider trades here).

With the returns demonstrated by the aforementioned strategies, retail investors must always pay attention to hedge fund and insider trading activity, and Analog Devices, Inc. (NASDAQ:ADI) is no exception.

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