To the average investor, there are dozens of methods investors can use to monitor publicly traded companies. Two of the best are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best fund managers can outpace the market by a very impressive margin (see just how much).
Equally as important, optimistic insider trading activity is another way to break down the world of equities. Obviously, there are lots of stimuli for an upper level exec to cut shares of his or her company, but only one, very simple reason why they would buy. Many academic studies have demonstrated the impressive potential of this method if “monkeys” understand what to do (learn more here).
Now, let’s take a look at the recent action surrounding Universal Electronics Inc (NASDAQ:UEIC).
Hedge fund activity in Universal Electronics Inc (NASDAQ:UEIC)
Heading into Q2, a total of 5 of the hedge funds we track were long in this stock, a change of 0% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their holdings substantially.
According to our comprehensive database, Royce & Associates, managed by Chuck Royce, holds the most valuable position in Universal Electronics Inc (NASDAQ:UEIC). Royce & Associates has a $3.2 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second largest stake is held by John Overdeck and David Siegel of Two Sigma Advisors, with a $0.8 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining hedgies that are bullish include Jim Simons’s Renaissance Technologies, Ken Griffin’s Citadel Investment Group and D. E. Shaw’s D E Shaw.
Due to the fact that Universal Electronics Inc (NASDAQ:UEIC) has witnessed falling interest from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of money managers that decided to sell off their full holdings heading into Q2. It’s worth mentioning that Thomas E. Lynch’s Mill Road Capital Management cut the largest investment of the 450+ funds we monitor, valued at an estimated $0.7 million in stock. These transactions are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
How are insiders trading Universal Electronics Inc (NASDAQ:UEIC)?
Insider purchases made by high-level executives is particularly usable when the company we’re looking at has experienced transactions within the past six months. Over the last six-month time period, Universal Electronics Inc (NASDAQ:UEIC) has seen zero unique insiders buying, and 5 insider sales (see the details of insider trades here).
With the returns demonstrated by Insider Monkey’s strategies, everyday investors should always keep an eye on hedge fund and insider trading activity, and Universal Electronics Inc (NASDAQ:UEIC) shareholders fit into this picture quite nicely.
