Micron Technology, Inc. (NASDAQ:MU) investors: listen to this unbelievably bullish data.
To the average investor, there are tons of methods market participants can use to analyze publicly traded companies. Two of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best money managers can trounce their index-focused peers by a healthy margin (see just how much).
Equally as useful, bullish insider trading sentiment is another way to analyze the financial markets. Obviously, there are plenty of stimuli for an insider to sell shares of his or her company, but only one, very clear reason why they would buy. Plenty of empirical studies have demonstrated the valuable potential of this method if investors know what to do (learn more here).
Furthermore, we’re going to study the latest info surrounding Micron Technology, Inc. (NASDAQ:MU).
Hedge fund activity in Micron Technology, Inc. (NASDAQ:MU)
Heading into Q3, a total of 69 of the hedge funds we track held long positions in this stock, a change of 86% from the first quarter. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their holdings substantially.
Out of the hedge funds we follow, Matthew Hulsizer’s PEAK6 Capital Management had the biggest position in Micron Technology, Inc. (NASDAQ:MU), worth close to $1.1425 billion, comprising 4.3% of its total 13F portfolio. Coming in second is William B. Gray of Orbis Investment Management, with a $1.0851 billion position; 8.6% of its 13F portfolio is allocated to the stock. Remaining peers with similar optimism include Seth Klarman’s Baupost Group, Steven Cohen’s SAC Capital Advisors and Rob Citrone’s Discovery Capital Management.
Now, particular hedge funds were leading the bulls’ herd. PEAK6 Capital Management, managed by Matthew Hulsizer, established the largest position in Micron Technology, Inc. (NASDAQ:MU). PEAK6 Capital Management had 1.1425 billion invested in the company at the end of the quarter. William B. Gray’s Orbis Investment Management also made a $1.0851 billion investment in the stock during the quarter. The following funds were also among the new MU investors: Seth Klarman’s Baupost Group, Steven Cohen’s SAC Capital Advisors, and Rob Citrone’s Discovery Capital Management.
How have insiders been trading Micron Technology, Inc. (NASDAQ:MU)?
Legal insider trading, particularly when it’s bullish, is particularly usable when the company in focus has experienced transactions within the past half-year. Over the last six-month time frame, Micron Technology, Inc. (NASDAQ:MU) has experienced zero unique insiders buying, and 13 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 Micron Technology, Inc. (NASDAQ:MU). These stocks are SemiLEDs Corporation (NASDAQ:LEDS), Integrated Silicon Solution, Inc. (NASDAQ:ISSI), Rambus Inc. (NASDAQ:RMBS), and Spansion Inc. (NYSE:CODE). This group of stocks belong to the semiconductor- memory chips industry and their market caps match MU’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| SemiLEDs Corporation (NASDAQ:LEDS) | 3 | 0 | 0 |
| Integrated Silicon Solution, Inc. (NASDAQ:ISSI) | 7 | 0 | 5 |
| Rambus Inc. (NASDAQ:RMBS) | 8 | 0 | 0 |
| Spansion Inc. (NYSE:CODE) | 22 | 0 | 4 |
Using the returns explained by Insider Monkey’s studies, average investors must always track hedge fund and insider trading sentiment, and Micron Technology, Inc. (NASDAQ:MU) applies perfectly to this mantra.
