In the financial world, there are many indicators shareholders can use to analyze stocks. 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 best picks of the elite investment managers can outpace the broader indices by a superb margin (see just how much).
Just as necessary, positive insider trading sentiment is a second way to analyze the financial markets. Obviously, there are many reasons for an insider to get rid of shares of his or her company, but only one, very clear reason why they would buy. Various academic studies have demonstrated the useful potential of this strategy if you understand what to do (learn more here).
Now that that’s out of the way, it’s important to study the newest info surrounding Inphi Corporation (NYSE:IPHI).
What have hedge funds been doing with Inphi Corporation (NYSE:IPHI)?
At Q2’s end, a total of 8 of the hedge funds we track held long positions in this stock, a change of 14% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings considerably.
Out of the hedge funds we follow, Ken Griffin’s Citadel Investment Group had the biggest position in Inphi Corporation (NYSE:IPHI), worth close to $10.2 million, comprising less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is Royce & Associates, managed by Chuck Royce, which held a $4.4 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other peers that are bullish include Ian P. Murray’s Lanexa Global Management, D. E. Shaw’s D E Shaw and Brian Ashford-Russell and Tim Woolley’s Polar Capital.
As one would understandably expect, particular hedge funds have been driving this bullishness. Citadel Investment Group, managed by Ken Griffin, initiated the biggest position in Inphi Corporation (NYSE:IPHI). Citadel Investment Group had 10.2 million invested in the company at the end of the quarter. Chuck Royce’s Royce & Associates also made a $4.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Ian P. Murray’s Lanexa Global Management, D. E. Shaw’s D E Shaw, and Brian Ashford-Russell and Tim Woolley’s Polar Capital.
Insider trading activity in Inphi Corporation (NYSE:IPHI)
Insider buying is particularly usable when the company in question has experienced transactions within the past half-year. Over the last half-year time period, Inphi Corporation (NYSE:IPHI) has seen zero unique insiders purchasing, 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 Inphi Corporation (NYSE:IPHI). These stocks are GSI Technology, Inc. (NASDAQ:GSIT), Silicon Image, Inc. (NASDAQ:SIMG), Kopin Corporation (NASDAQ:KOPN), FormFactor, Inc. (NASDAQ:FORM), and Entropic Communications, Inc. (NASDAQ:ENTR). This group of stocks are in the semiconductor – broad line industry and their market caps are similar to IPHI’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| GSI Technology, Inc. (NASDAQ:GSIT) | 6 | 0 | 0 |
| Silicon Image, Inc. (NASDAQ:SIMG) | 15 | 0 | 0 |
| Kopin Corporation (NASDAQ:KOPN) | 7 | 0 | 0 |
| FormFactor, Inc. (NASDAQ:FORM) | 16 | 0 | 0 |
| Entropic Communications, Inc. (NASDAQ:ENTR) | 11 | 0 | 0 |
Using the results explained by the previously mentioned research, average investors must always keep one eye on hedge fund and insider trading sentiment, and Inphi Corporation (NYSE:IPHI) is no exception.
