Should You Buy Multi-Fineline Electronix, Inc. (MFLX)?

Multi-Fineline Electronix, Inc. (NASDAQ:MFLX) has seen an increase in activity from the world’s largest hedge funds recently.

In the 21st century investor’s toolkit, there are plenty of metrics investors can use to monitor the equity markets. A duo of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite hedge fund managers can trounce their index-focused peers by a solid amount (see just how much).

Equally as integral, optimistic insider trading sentiment is a second way to parse down the stock market universe. There are plenty of incentives for an executive to downsize shares of his or her company, but just one, very simple reason why they would initiate a purchase. Several empirical studies have demonstrated the useful potential of this strategy if you understand what to do (learn more here).

With all of this in mind, it’s important to take a glance at the latest action encompassing Multi-Fineline Electronix, Inc. (NASDAQ:MFLX).

Hedge fund activity in Multi-Fineline Electronix, Inc. (NASDAQ:MFLX)

At the end of the first quarter, a total of 8 of the hedge funds we track were bullish in this stock, a change of 14% from the first quarter. With hedge funds’ sentiment swirling, there exists a few noteworthy hedge fund managers who were boosting their holdings significantly.

When looking at the hedgies we track, Royce & Associates, managed by Chuck Royce, holds the biggest position in Multi-Fineline Electronix, Inc. (NASDAQ:MFLX). Royce & Associates has a $2.9 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Coming in second is Ariel Investments, managed by John W. Rogers, which held a $2.8 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other peers that hold long positions include Jim Simons’s Renaissance Technologies, Glenn Russell Dubin’s Highbridge Capital Management and Israel Englander’s Millennium Management.

Consequently, some big names have been driving this bullishness. Highbridge Capital Management, managed by Glenn Russell Dubin, initiated the most outsized position in Multi-Fineline Electronix, Inc. (NASDAQ:MFLX). Highbridge Capital Management had 0.6 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $0.6 million position during the quarter. The only other fund with a new position in the stock is Neil Chriss’s Hutchin Hill Capital.

How are insiders trading Multi-Fineline Electronix, Inc. (NASDAQ:MFLX)?

Bullish insider trading is best served when the company in focus has seen transactions within the past half-year. Over the last 180-day time frame, Multi-Fineline Electronix, Inc. (NASDAQ:MFLX) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Multi-Fineline Electronix, Inc. (NASDAQ:MFLX). These stocks are Plexus Corp. (NASDAQ:PLXS), TTM Technologies, Inc. (NASDAQ:TTMI), Park Electrochemical Corp. (NYSE:PKE), Viasystems Group, Inc. (NASDAQ:VIAS), and Kimball International (NASDAQ:KBALB). This group of stocks belong to the printed circuit boards industry and their market caps are closest to MFLX’s market cap.

With the results shown by the aforementioned strategies, retail investors should always keep an eye on hedge fund and insider trading activity, and Multi-Fineline Electronix, Inc. (NASDAQ:MFLX) is an important part of this process.

Click here to learn why you should track hedge funds