Hedge Funds Aren’t Crazy About ATMI Inc (ATMI) Anymore

In the financial world, there are a multitude of metrics market participants can use to track stocks. Two of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can outclass their index-focused peers by a healthy amount (see just how much).

Equally as crucial, positive insider trading activity is a second way to look at the marketplace. There are lots of stimuli for an executive to drop shares of his or her company, but only one, very simple reason why they would buy. Various academic studies have demonstrated the impressive potential of this strategy if investors know what to do (learn more here).

What’s more, we’re going to discuss the newest info surrounding ATMI Inc (NASDAQ:ATMI).

How are hedge funds trading ATMI Inc (NASDAQ:ATMI)?

Heading into Q3, a total of 9 of the hedge funds we track held long positions in this stock, a change of -18% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes significantly.

According to our 13F database, Chuck Royce’s Royce & Associates had the biggest position in ATMI Inc (NASDAQ:ATMI), worth close to $92.4 million, comprising 0.3% of its total 13F portfolio. Sitting at the No. 2 spot is Carlson Capital, managed by Clint Carlson, which held a $5.1 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other peers that are bullish include Douglas T. Granat’s Trigran Investments, Ken Griffin’s Citadel Investment Group and John Overdeck and David Siegel’s Two Sigma Advisors.

Because ATMI Inc (NASDAQ:ATMI) has witnessed bearish sentiment from the entirety of the hedge funds we track, we can see that there is a sect of fund managers that slashed their full holdings in Q1. Interestingly, Joel Greenblatt’s Gotham Asset Management sold off the largest investment of all the hedgies we track, worth about $1.8 million in stock. Neil Chriss’s fund, Hutchin Hill Capital, also sold off its stock, about $0.9 million worth. These transactions are interesting, as total hedge fund interest was cut by 2 funds in Q1.

What have insiders been doing with ATMI Inc (NASDAQ:ATMI)?

Bullish insider trading is at its handiest when the primary stock in question has experienced transactions within the past six months. Over the latest 180-day time period, ATMI Inc (NASDAQ:ATMI) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll go over the relationship between both of these indicators in other stocks similar to ATMI Inc (NASDAQ:ATMI). These stocks are Intermolecular Inc (NASDAQ:IMI), Ultratech, Inc. (NASDAQ:UTEK), Tessera Technologies, Inc. (NASDAQ:TSRA), Kulicke and Soffa Industries Inc. (NASDAQ:KLIC), and Brooks Automation, Inc. (USA) (NASDAQ:BRKS). This group of stocks are in the semiconductor equipment & materials industry and their market caps match ATMI’s market cap.

Using the returns shown by the previously mentioned analyses, regular investors should always watch hedge fund and insider trading sentiment, and ATMI Inc (NASDAQ:ATMI) is no exception.

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