Is Skyworks Solutions Inc (SWKS) Going to Burn These Hedge Funds?

Is Skyworks Solutions Inc (NASDAQ:SWKS) a buy?

In the financial world, there are plenty of metrics market participants can use to watch the equity markets. Two of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best investment managers can beat the broader indices by a superb margin (see just how much).

Just as crucial, bullish insider trading activity is a second way to analyze the world of equities. Just as you’d expect, there are a variety of stimuli for an executive to drop shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Several academic studies have demonstrated the impressive potential of this tactic if you know where to look (learn more here).

Furthermore, let’s study the newest info surrounding Skyworks Solutions Inc (NASDAQ:SWKS).

How have hedgies been trading Skyworks Solutions Inc (NASDAQ:SWKS)?

In preparation for the third quarter, a total of 22 of the hedge funds we track were long in this stock, a change of -4% from the previous quarter. With the smart money’s capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their stakes substantially.

According to our 13F database, Amy Minella’s Cardinal Capital had the biggest position in Skyworks Solutions Inc (NASDAQ:SWKS), worth close to $39.4 million, accounting for 2.5% of its total 13F portfolio. On Cardinal Capital’s heels is Act II Capital, managed by Dennis Leibowitz, which held a $15.5 million position; the fund has 4.2% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Israel Englander’s Millennium Management and Glenn Russell Dubin’s Highbridge Capital Management.

As Skyworks Solutions Inc (NASDAQ:SWKS) has witnessed declining interest from upper-tier hedge fund managers, it’s safe to say that there were a few funds who were dropping their full holdings last quarter. It’s worth mentioning that Lee Ainslie’s Maverick Capital dropped the biggest stake of all the hedgies we watch, valued at about $197.2 million in stock, and Mark Kingdon of Kingdon Capital was right behind this move, as the fund cut about $9.9 million worth. These moves are important to note, as aggregate hedge fund interest fell by 1 funds last quarter.

How have insiders been trading Skyworks Solutions Inc (NASDAQ:SWKS)?

Insider buying made by high-level executives is best served when the primary stock in question has seen transactions within the past half-year. Over the latest 180-day time frame, Skyworks Solutions Inc (NASDAQ:SWKS) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll go over the relationship between both of these indicators in other stocks similar to Skyworks Solutions Inc (NASDAQ:SWKS). These stocks are Hittite Microwave Corp (NASDAQ:HITT), Microsemi Corporation (NASDAQ:MSCC), Semtech Corporation (NASDAQ:SMTC), Marvell Technology Group Ltd. (NASDAQ:MRVL), and IPG Photonics Corporation (NASDAQ:IPGP). This group of stocks are the members of the semiconductor – integrated circuits industry and their market caps are similar to SWKS’s market cap.