Is KVH Industries, Inc. (NASDAQ:KVHI) ready to rally soon? Hedge funds are becoming more confident. The number of long hedge fund positions advanced by 1 in recent months.
In the 21st century investor’s toolkit, there are tons of metrics market participants can use to track stocks. A pair 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 hedge fund managers can outpace the market by a healthy margin (see just how much).
Just as beneficial, optimistic insider trading activity is another way to break down the stock market universe. Just as you’d expect, there are plenty of stimuli for a corporate insider to downsize shares of his or her company, but just one, very simple reason why they would behave bullishly. Many academic studies have demonstrated the useful potential of this strategy if investors know what to do (learn more here).
Now, let’s take a gander at the recent action encompassing KVH Industries, Inc. (NASDAQ:KVHI).
How are hedge funds trading KVH Industries, Inc. (NASDAQ:KVHI)?
At Q1’s end, a total of 6 of the hedge funds we track were long in this stock, a change of 20% from the previous quarter. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were boosting their holdings substantially.
When looking at the hedgies we track, Royce & Associates, managed by Chuck Royce, holds the biggest position in KVH Industries, Inc. (NASDAQ:KVHI). Royce & Associates has a $19.6 million position in the stock, comprising 0.1% of its 13F portfolio. On Royce & Associates’s heels is Gregory A. Weaver of Invicta Capital Management, with a $16.1 million position; 7.2% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism include Mark Broach’s Manatuck Hill Partners, Jim Simons’s Renaissance Technologies and John Overdeck and David Siegel’s Two Sigma Advisors.
As industrywide interest jumped, specific money managers have been driving this bullishness. Gardner Russo & Gardner, managed by Tom Russo, established the largest position in KVH Industries, Inc. (NASDAQ:KVHI). Gardner Russo & Gardner had 0 million invested in the company at the end of the quarter.
What have insiders been doing with KVH Industries, Inc. (NASDAQ:KVHI)?
Bullish insider trading is best served when the company in question has seen transactions within the past 180 days. Over the last 180-day time frame, KVH Industries, Inc. (NASDAQ:KVHI) has experienced zero unique insiders buying, and 2 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to KVH Industries, Inc. (NASDAQ:KVHI). These stocks are Numerex Corp. (NASDAQ:NMRX), Symmetricom, Inc. (NASDAQ:SYMM), ShoreTel, Inc. (NASDAQ:SHOR), Mitel Networks Corporation (NASDAQ:MITL), and Aviat Networks Inc (NASDAQ:AVNW). This group of stocks are in the communication equipment industry and their market caps are similar to KVHI’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Numerex Corp. (NASDAQ:NMRX) | 5 | 0 | 0 |
| Symmetricom, Inc. (NASDAQ:SYMM) | 11 | 0 | 4 |
| ShoreTel, Inc. (NASDAQ:SHOR) | 5 | 0 | 0 |
| Mitel Networks Corporation (NASDAQ:MITL) | 5 | 0 | 0 |
| Aviat Networks Inc (NASDAQ:AVNW) | 17 | 0 | 0 |
With the results exhibited by our studies, retail investors must always watch hedge fund and insider trading sentiment, and KVH Industries, Inc. (NASDAQ:KVHI) is an important part of this process.
