Comtech Telecomm. Corp. (CMTL): Are Hedge Funds Right About This Stock?
Is Comtech Telecomm. Corp. (NASDAQ:CMTL) a good investment?
Now, according to many of your fellow readers, hedge funds are viewed as overrated, old investment vehicles of a period lost to current times. Although there are over 8,000 hedge funds with their doors open currently, this site focuses on the aristocrats of this club, around 525 funds. It is assumed that this group has its hands on most of all hedge funds' total assets, and by watching their highest performing stock picks, we've figured out a number of investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we've began to sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Equally as necessary, positive insider trading sentiment is a second way to analyze the financial markets. Just as you'd expect, there are a variety of stimuli for a corporate insider to downsize shares of his or her company, but only one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the impressive potential of this method if piggybackers understand what to do (learn more here).
Now that that's out of the way, it's important to discuss the recent info for Comtech Telecomm. Corp. (NASDAQ:CMTL).
Hedge fund activity in Comtech Telecomm. Corp. (NASDAQ:CMTL)
In preparation for the third quarter, a total of 10 of the hedge funds we track were long 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 a few notable hedge fund managers who were boosting their stakes substantially.
When using filings from the hedgies we track, Cliff Asness's AQR Capital Management had the largest position in Comtech Telecomm. Corp. (NASDAQ:CMTL), worth close to $9.4 million, comprising less than 0.1%% of its total 13F portfolio. The second largest stake is held by Israel Englander of Millennium Management, with a $5.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other peers with similar optimism include Chuck Royce's Royce & Associates, Peter Algert and Kevin Coldiron's Algert Coldiron Investors and John Overdeck and David Siegel's Two Sigma Advisors.
Since Comtech Telecomm. Corp. (NASDAQ:CMTL) has experienced a fall in interest from the entirety of the hedge funds we track, logic holds that there exists a select few fund managers that decided to sell off their positions entirely at the end of the second quarter. Intriguingly, Jim Simons's Renaissance Technologies dumped the biggest position of all the hedgies we key on, worth close to $1.9 million in call options.. Matthew Hulsizer's fund, PEAK6 Capital Management, also dropped its call options., about $0.9 million worth. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What do corporate executives and insiders think about Comtech Telecomm. Corp. (NASDAQ:CMTL)?
Insider buying is at its handiest when the primary stock in question has seen transactions within the past half-year. Over the last six-month time period, Comtech Telecomm. Corp. (NASDAQ:CMTL) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We'll go over the relationship between both of these indicators in other stocks similar to Comtech Telecomm. Corp. (NASDAQ:CMTL). These stocks are Sierra Wireless, Inc. (USA) (NASDAQ:SWIR), 8x8, Inc. (NASDAQ:EGHT), CalAmp Corp. (NASDAQ:CAMP), Allot Communications Ltd. (NASDAQ:ALLT), and Calix Inc (NYSE:CALX). This group of stocks are the members of the communication equipment industry and their market caps match CMTL's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
Sierra Wireless, Inc. (USA) (NASDAQ:SWIR)
8x8, Inc. (NASDAQ:EGHT)
CalAmp Corp. (NASDAQ:CAMP)
Allot Communications Ltd. (NASDAQ:ALLT)
Calix Inc (NYSE:CALX)
Using the returns shown by Insider Monkey's strategies, regular investors must always keep one eye on hedge fund and insider trading activity, and Comtech Telecomm. Corp. (NASDAQ:CMTL) is an important part of this process.