Is Itron, Inc. (ITRI) Going to Burn These Hedge Funds?

Itron, Inc. (NASDAQ:ITRI) was in 14 hedge funds’ portfolio at the end of March. ITRI shareholders have witnessed a decrease in activity from the world’s largest hedge funds in recent months. There were 17 hedge funds in our database with ITRI positions at the end of the previous quarter.

In the financial world, there are a multitude of metrics market participants can use to analyze Mr. Market. A duo of the best 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 money managers can outclass the S&P 500 by a solid amount (see just how much).

Just as beneficial, positive insider trading activity is a second way to parse down the investments you’re interested in. Obviously, there are lots of stimuli for a corporate insider to get rid of shares of his or her company, but just one, very simple reason why they would buy. Many academic studies have demonstrated the impressive potential of this tactic if piggybackers know where to look (learn more here).

With these “truths” under our belt, we’re going to take a peek at the key action regarding Itron, Inc. (NASDAQ:ITRI).

How are hedge funds trading Itron, Inc. (NASDAQ:ITRI)?

Heading into Q2, a total of 14 of the hedge funds we track held long positions in this stock, a change of -18% from the previous quarter. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were upping their holdings substantially.

Of the funds we track, Dreman Value Management, managed by David Dreman, holds the most valuable position in Itron, Inc. (NASDAQ:ITRI). Dreman Value Management has a $21.4 million position in the stock, comprising 0.6% of its 13F portfolio. The second largest stake is held by Cliff Asness of AQR Capital Management, with a $13.8 million position; 0.1% of its 13F portfolio is allocated to the stock. Other hedgies that are bullish include Boaz Weinstein’s Saba Capital, John I. Dickerson’s Summit Global Management and Mario Gabelli’s GAMCO Investors.

Judging by the fact that Itron, Inc. (NASDAQ:ITRI) has witnessed a declination in interest from the entirety of the hedge funds we track, it’s safe to say that there lies a certain “tier” of money managers that decided to sell off their entire stakes at the end of the first quarter. Interestingly, Ian Simm’s Impax Asset Management said goodbye to the largest position of all the hedgies we key on, totaling an estimated $34.9 million in stock., and Glenn Russell Dubin of Highbridge Capital Management was right behind this move, as the fund sold off about $2.3 million worth. These transactions are interesting, as total hedge fund interest fell by 3 funds at the end of the first quarter.

What do corporate executives and insiders think about Itron, Inc. (NASDAQ:ITRI)?

Bullish insider trading is at its handiest when the company in focus has experienced transactions within the past half-year. Over the latest six-month time period, Itron, Inc. (NASDAQ:ITRI) has experienced zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Itron, Inc. (NASDAQ:ITRI). These stocks are Coherent, Inc. (NASDAQ:COHR), Geospace Technologies Corp (NASDAQ:GEOS), Ixia (NASDAQ:XXIA), Curtiss-Wright Corp. (NYSE:CW), and Cognex Corporation (NASDAQ:CGNX). All of these stocks are in the scientific & technical instruments industry and their market caps match ITRI’s market cap.