Daktronics, Inc. (NASDAQ:DAKT) was in 10 hedge funds’ portfolio at the end of the fourth quarter of 2012. DAKT has experienced an increase in enthusiasm from smart money of late. There were 9 hedge funds in our database with DAKT positions at the end of the previous quarter.
In the financial world, there are a multitude of gauges market participants can use to analyze their holdings. Some 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 top picks of the top hedge fund managers can outpace the S&P 500 by a very impressive margin (see just how much).
Just as key, optimistic insider trading activity is a second way to parse down the investments you’re interested in. Just as you’d expect, there are lots of motivations for a corporate insider to drop shares of his or her company, but just one, very simple reason why they would initiate a purchase. Various academic studies have demonstrated the market-beating potential of this tactic if you understand what to do (learn more here).
With these “truths” under our belt, we’re going to take a gander at the latest action regarding Daktronics, Inc. (NASDAQ:DAKT).
Hedge fund activity in Daktronics, Inc. (NASDAQ:DAKT)
In preparation for this year, a total of 10 of the hedge funds we track were bullish in this stock, a change of 11% from one quarter earlier. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes considerably.
According to our comprehensive database, Renaissance Technologies, managed by Jim Simons, holds the largest position in Daktronics, Inc. (NASDAQ:DAKT). Renaissance Technologies has a $3 million position in the stock, comprising 0% of its 13F portfolio. The second largest stake is held by McKinley Capital Management, managed by Robert B. Gillam, which held a $1 million position; 0.1% of its 13F portfolio is allocated to the company. Some other peers that are bullish include Mario Gabelli’s GAMCO Investors, Israel Englander’s Millennium Management and Cliff Asness’s AQR Capital Management.
As one would reasonably expect, key hedge funds have jumped into Daktronics, Inc. (NASDAQ:DAKT) headfirst. McKinley Capital Management, managed by Robert B. Gillam, initiated the biggest position in Daktronics, Inc. (NASDAQ:DAKT). McKinley Capital Management had 1 million invested in the company at the end of the quarter. Peter Algert and Kevin Coldiron’s Algert Coldiron Investors also initiated a $0 million position during the quarter. The only other fund with a new position in the stock is Neil Chriss’s Hutchin Hill Capital.
What do corporate executives and insiders think about Daktronics, Inc. (NASDAQ:DAKT)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company in question has seen transactions within the past six months. Over the last six-month time period, Daktronics, Inc. (NASDAQ:DAKT) has seen zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Daktronics, Inc. (NASDAQ:DAKT). These stocks are Powell Industries, Inc. (NASDAQ:POWL), Electro Scientific Industries, Inc. (NASDAQ:ESIO), Ameresco Inc (NYSE:AMRC), Preformed Line Products Company (NASDAQ:PLPC), and Zoltek Companies, Inc. (NASDAQ:ZOLT). This group of stocks are the members of the industrial electrical equipment industry and their market caps resemble DAKT’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Powell Industries, Inc. (NASDAQ:POWL) | 6 | 1 | 4 |
| Electro Scientific Industries, Inc. (NASDAQ:ESIO) | 8 | 0 | 0 |
| Ameresco Inc (NYSE:AMRC) | 5 | 3 | 1 |
| Preformed Line Products Company (NASDAQ:PLPC) | 3 | 0 | 3 |
| Zoltek Companies, Inc. (NASDAQ:ZOLT) | 9 | 2 | 0 |
With the results demonstrated by Insider Monkey’s time-tested strategies, everyday investors must always keep an eye on hedge fund and insider trading activity, and Daktronics, Inc. (NASDAQ:DAKT) applies perfectly to this mantra.
