Here is What Hedge Funds Think About Celestica Inc. (USA) (CLS)

What’s a smart Celestica Inc. (USA) (NYSE:CLS) investor to do?

In the 21st century investor’s toolkit, there are many gauges investors can use to monitor the equity markets. Two of the best are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top hedge fund managers can trounce the S&P 500 by a solid margin (see just how much).

Just as key, positive insider trading activity is another way to look at the marketplace. Just as you’d expect, there are plenty of reasons for an executive to get rid of shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Various empirical studies have demonstrated the valuable potential of this tactic if “monkeys” understand what to do (learn more here).

Furthermore, it’s important to discuss the recent info surrounding Celestica Inc. (USA) (NYSE:CLS).

Hedge fund activity in Celestica Inc. (USA) (NYSE:CLS)

In preparation for the third quarter, a total of 6 of the hedge funds we track held long positions in this stock, a change of -40% from the previous quarter. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were increasing their holdings significantly.

Out of the hedge funds we follow, Daniel Bubis’s Tetrem Capital Management had the biggest position in Celestica Inc. (USA) (NYSE:CLS), worth close to $9.5 million, comprising 0.3% of its total 13F portfolio. The second largest stake is held by Dreman Value Management, managed by David Dreman, which held a $8.5 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Peter Rathjens Bruce Clarke and John Campbell’s Arrowstreet Capital, John Thiessen’s Vertex One Asset Management and John Overdeck and David Siegel’s Two Sigma Advisors.

Due to the fact Celestica Inc. (USA) (NYSE:CLS) has witnessed dropping sentiment from the smart money’s best and brightest, it’s safe to say that there is a sect of hedgies that slashed their full holdings at the end of the second quarter. Intriguingly, Neil Chriss’s Hutchin Hill Capital cut the biggest investment of all the hedgies we watch, totaling about $0.5 million in stock, and Joel Greenblatt of Gotham Asset Management was right behind this move, as the fund cut about $0.4 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 4 funds at the end of the second quarter.

What have insiders been doing with Celestica Inc. (USA) (NYSE:CLS)?

Insider buying is best served when the company in focus has seen transactions within the past half-year. Over the last 180-day time frame, Celestica Inc. (USA) (NYSE:CLS) 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 Celestica Inc. (USA) (NYSE:CLS). These stocks are Park Electrochemical Corp. (NYSE:PKE), TTM Technologies, Inc. (NASDAQ:TTMI), Plexus Corp. (NASDAQ:PLXS), Benchmark Electronics, Inc. (NYSE:BHE), and Raven Industries, Inc. (NASDAQ:RAVN). This group of stocks are the members of the printed circuit boards industry and their market caps are similar to CLS’s market cap.