Xyratex Ltd. (NASDAQ:XRTX) was in 9 hedge funds’ portfolio at the end of March. XRTX shareholders have witnessed an increase in activity from the world’s largest hedge funds of late. There were 8 hedge funds in our database with XRTX positions at the end of the previous quarter.
Equally as integral, optimistic insider trading activity is another way to parse down the financial markets. As the old adage goes: there are plenty of stimuli for a corporate insider to get rid of shares of his or her company, but only one, very clear reason why they would buy. Plenty of academic studies have demonstrated the valuable potential of this tactic if piggybackers understand what to do (learn more here).
Keeping this in mind, we’re going to take a glance at the key action encompassing Xyratex Ltd. (NASDAQ:XRTX).
What does the smart money think about Xyratex Ltd. (NASDAQ:XRTX)?
At Q1’s end, a total of 9 of the hedge funds we track were bullish in this stock, a change of 13% from one quarter earlier.
As aggregate interest increased, key hedge funds have jumped into Xyratex Ltd. (NASDAQ:XRTX) headfirst. Renaissance Technologies, managed by Jim Simons, initiated the most valuable position in Xyratex Ltd. (NASDAQ:XRTX). Renaissance Technologies had 1.5 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also made a $0.4 million investment in the stock during the quarter. The following funds were also among the new XRTX investors: Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners and Matthew Hulsizer’s PEAK6 Capital Management.
Insider trading activity in Xyratex Ltd. (NASDAQ:XRTX)
Insider buying is most useful when the primary stock in question has experienced transactions within the past six months. Over the last half-year time period, Xyratex Ltd. (NASDAQ:XRTX) has experienced 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 Xyratex Ltd. (NASDAQ:XRTX). These stocks are OCZ Technology Group Inc. (NASDAQ:OCZ), Imation Corp. (NYSE:IMN), STEC, Inc. (NASDAQ:STEC), Datalink Corporation (NASDAQ:DTLK), and Quantum Corp (NYSE:QTM). This group of stocks are the members of the data storage devices industry and their market caps are closest to XRTX’s market cap.
Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
OCZ Technology Group Inc. (NASDAQ:OCZ) | 5 | 0 | 0 |
Imation Corp. (NYSE:IMN) | 9 | 1 | 0 |
STEC, Inc. (NASDAQ:STEC) | 15 | 2 | 0 |
Datalink Corporation (NASDAQ:DTLK) | 7 | 0 | 5 |
Quantum Corp (NYSE:QTM) | 11 | 1 | 0 |
With the returns shown by our tactics, everyday investors must always pay attention to hedge fund and insider trading activity, and Xyratex Ltd. (NASDAQ:XRTX) is an important part of this process.