Is Logitech International SA (USA) (LOGI) Going to Burn These Hedge Funds?

What’s a smart Logitech International SA (USA) (NASDAQ:LOGI) investor to do?

In today’s marketplace, there are plenty of metrics investors can use to analyze the equity markets. A duo of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top fund managers can beat their index-focused peers by a superb amount (see just how much).

Just as key, bullish insider trading activity is another way to analyze the marketplace. Just as you’d expect, there are many incentives for an executive to sell shares of his or her company, but only one, very simple reason why they would buy. Several academic studies have demonstrated the useful potential of this tactic if “monkeys” understand where to look (learn more here).

Thus, let’s analyze the newest info surrounding Logitech International SA (USA) (NASDAQ:LOGI).

How have hedgies been trading Logitech International SA (USA) (NASDAQ:LOGI)?

At the end of the second quarter, a total of 10 of the hedge funds we track held long positions in this stock, a change of 0% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their stakes substantially.

When using filings from the hedgies we track, David Gallo’s Valinor Management LLC had the largest position in Logitech International SA (USA) (NASDAQ:LOGI), worth close to $9.2 million, accounting for 0.4% of its total 13F portfolio. Coming in second is Chuck Royce of Royce & Associates, with a $9.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include Philippe Laffont’s Coatue Management, Thomas E. Claugus’s GMT Capital and D. E. Shaw’s D E Shaw.

Because Logitech International SA (USA) (NASDAQ:LOGI) has experienced declining interest from the entirety of the hedge funds we track, logic holds that there exists a select few hedge funds who were dropping their positions entirely in Q1. Interestingly, Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management sold off the biggest stake of the 450+ funds we key on, comprising close to $1.6 million in stock. Mike Vranos’s fund, Ellington, also said goodbye to its stock, about $0.1 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

What have insiders been doing with Logitech International SA (USA) (NASDAQ:LOGI)?

Legal insider trading, particularly when it’s bullish, is most useful when the company in focus has experienced transactions within the past half-year. Over the latest 180-day time period, Logitech International SA (USA) (NASDAQ:LOGI) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll also review the relationship between both of these indicators in other stocks similar to Logitech International SA (USA) (NASDAQ:LOGI). These stocks are Intermec Inc. (NYSE:IN), Nice Systems Ltd (ADR) (NASDAQ:NICE), Universal Display Corporation (NASDAQ:PANL), Synaptics, Incorporated (NASDAQ:SYNA), and Electronics For Imaging, Inc. (NASDAQ:EFII). All of these stocks are in the computer peripherals industry and their market caps are similar to LOGI’s market cap.