Should You Avoid Ceragon Networks Ltd. (CRNT)?

Ceragon Networks Ltd. (NASDAQ:CRNT) shareholders have witnessed a decrease in activity from the world’s largest hedge funds recently.

At the moment, there are many indicators shareholders can use to watch their holdings. A duo of the most useful 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 investment managers can outperform their index-focused peers by a healthy margin (see just how much).

Equally as important, optimistic insider trading sentiment is a second way to break down the world of equities. There are a variety of stimuli for an executive to sell shares of his or her company, but just one, very simple reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this strategy if investors understand what to do (learn more here).

Keeping this in mind, let’s take a glance at the key action surrounding Ceragon Networks Ltd. (NASDAQ:CRNT).

Hedge fund activity in Ceragon Networks Ltd. (NASDAQ:CRNT)

At the end of the first quarter, a total of 6 of the hedge funds we track held long positions in this stock, a change of 0% from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of notable hedge fund managers who were upping their holdings meaningfully.

According to our comprehensive database, Invicta Capital Management, managed by Gregory A. Weaver, holds the most valuable position in Ceragon Networks Ltd. (NASDAQ:CRNT). Invicta Capital Management has a $10.9 million position in the stock, comprising 4.9% of its 13F portfolio. Coming in second is Diker Management, managed by Mark N. Diker, which held a $8.2 million position; the fund has 2.2% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include Peter A. Wright’s P.A.W. CAPITAL PARTNERS, Jim Simons’s Renaissance Technologies and D. E. Shaw’s D E Shaw.

Judging by the fact that Ceragon Networks Ltd. (NASDAQ:CRNT) has experienced declining sentiment from hedge fund managers, we can see that there is a sect of money managers who were dropping their entire stakes heading into Q2. Intriguingly, Israel Englander’s Millennium Management said goodbye to the biggest investment of the “upper crust” of funds we monitor, comprising about $0.2 million in stock., and Ken Griffin of Citadel Investment Group was right behind this move, as the fund sold off about $0 million worth. These transactions are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

What do corporate executives and insiders think about Ceragon Networks Ltd. (NASDAQ:CRNT)?

Insider buying is most useful when the company in focus has seen transactions within the past half-year. Over the latest half-year time period, Ceragon Networks Ltd. (NASDAQ:CRNT) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Ceragon Networks Ltd. (NASDAQ:CRNT). These stocks are Parametric Sound Corp (NASDAQ:PAMT), TeleCommunication Systems, Inc. (NASDAQ:TSYS), Symmetricom, Inc. (NASDAQ:SYMM), Ikanos Communications, Inc. (NASDAQ:IKAN), and AudioCodes Ltd. (NASDAQ:AUDC). This group of stocks are the members of the communication equipment industry and their market caps are similar to CRNT’s market cap.