In the 21st century investor’s toolkit, there are plenty of metrics market participants can use to track their holdings. A couple of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best fund managers can outclass the market by a superb margin (see just how much).
Just as useful, positive insider trading sentiment is a second way to look at the financial markets. There are lots of reasons for an executive to drop shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Various academic studies have demonstrated the valuable potential of this tactic if you know where to look (learn more here).
Now that that’s out of the way, we’re going to study the recent info for Entropic Communications, Inc. (NASDAQ:ENTR).
How are hedge funds trading Entropic Communications, Inc. (NASDAQ:ENTR)?
At the end of the second quarter, a total of 11 of the hedge funds we track were bullish in this stock, a change of 0% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were increasing their holdings significantly.
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Since Entropic Communications, Inc. (NASDAQ:ENTR) has faced dropping sentiment from the entirety of the hedge funds we track, logic holds that there is a sect of hedgies that decided to sell off their entire stakes at the end of the second quarter. Interestingly, Glenn Russell Dubin’s Highbridge Capital Management cut the biggest position of the “upper crust” of funds we watch, comprising an estimated $1 million in stock. Matthew Tewksbury’s fund, Stevens Capital Management, also cut its stock, about $0.2 million worth. These bearish behaviors 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 Entropic Communications, Inc. (NASDAQ:ENTR)?
Insider buying is best served when the company we’re looking at has experienced transactions within the past half-year. Over the last half-year time period, Entropic Communications, Inc. (NASDAQ:ENTR) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Entropic Communications, Inc. (NASDAQ:ENTR). These stocks are M/A-COM Technology Solutions Holdings (NASDAQ:MTSI), Kopin Corporation (NASDAQ:KOPN), FormFactor, Inc. (NASDAQ:FORM), Inphi Corporation (NYSE:IPHI), and Silicon Image, Inc. (NASDAQ:SIMG). This group of stocks belong to the semiconductor – broad line industry and their market caps are similar to ENTR’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| M/A-COM Technology Solutions Holdings (NASDAQ:MTSI) | 4 | 0 | 0 |
| Kopin Corporation (NASDAQ:KOPN) | 7 | 0 | 0 |
| FormFactor, Inc. (NASDAQ:FORM) | 16 | 0 | 0 |
| Inphi Corporation (NYSE:IPHI) | 8 | 0 | 0 |
| Silicon Image, Inc. (NASDAQ:SIMG) | 15 | 0 | 0 |
Using the results shown by Insider Monkey’s research, regular investors must always track hedge fund and insider trading sentiment, and Entropic Communications, Inc. (NASDAQ:ENTR) applies perfectly to this mantra.
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