Should KEMET Corporation (NYSE:KEM) investors track the following data?
In the 21st century investor’s toolkit, there are tons of metrics market participants can use to track stocks. A couple of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top fund managers can outclass the broader indices by a very impressive margin (see just how much).
Just as necessary, positive insider trading sentiment is another way to analyze the financial markets. There are lots of motivations for a corporate insider to downsize shares of his or her company, but only one, very simple reason why they would behave bullishly. Various empirical studies have demonstrated the valuable potential of this method if piggybackers understand where to look (learn more here).
Keeping this in mind, let’s examine the newest info for KEMET Corporation (NYSE:KEM).
What have hedge funds been doing with KEMET Corporation (NYSE:KEM)?
At the end of the second quarter, a total of 6 of the hedge funds we track held long positions in this stock, a change of 20% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their holdings considerably.
As aggregate interest spiked, specific money managers were leading the bulls’ herd. Cadian Capital, managed by Eric Bannasch, assembled the largest position in KEMET Corporation (NYSE:KEM). Cadian Capital had 17 million invested in the company at the end of the quarter. Chuck Royce’s Royce & Associates also initiated a $9.3 million position during the quarter. The following funds were also among the new KEM investors: Cliff Asness’s AQR Capital Management, Israel Englander’s Millennium Management, and Mike Vranos’s Ellington.
How are insiders trading KEMET Corporation (NYSE:KEM)?
Bullish insider trading is particularly usable when the company we’re looking at has seen transactions within the past six months. Over the last half-year time period, KEMET Corporation (NYSE:KEM) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to KEMET Corporation (NYSE:KEM). These stocks are Neonode, Inc (NASDAQ:NEON), Vicor Corp (NASDAQ:VICR), Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO), CTS Corporation (NYSE:CTS), and UniPixel Inc (NASDAQ:UNXL). This group of stocks are in the diversified electronics industry and their market caps match KEM’s market cap.
Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
Neonode, Inc (NASDAQ:NEON) | 3 | 0 | 0 |
Vicor Corp (NASDAQ:VICR) | 5 | 0 | 0 |
Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO) | 10 | 0 | 0 |
CTS Corporation (NYSE:CTS) | 11 | 0 | 0 |
UniPixel Inc (NASDAQ:UNXL) | 9 | 0 | 0 |
Using the results explained by our strategies, regular investors should always track hedge fund and insider trading activity, and KEMET Corporation (NYSE:KEM) is no exception.
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KEMET Corporation (KEM): Are Hedge Funds Right About This Stock?