Should You Sell Rubicon Technology, Inc. (RBCN)?
What's a smart Rubicon Technology, Inc. (NASDAQ:RBCN) investor to do?
In today’s marketplace, there are a multitude of gauges shareholders can use to watch the equity markets. Some of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best investment managers can outperform the S&P 500 by a superb margin (see just how much).
Just as useful, bullish insider trading activity is another way to analyze the world of equities. Just as you'd expect, there are plenty of reasons for a corporate insider to drop shares of his or her company, but only one, very clear reason why they would buy. Several academic studies have demonstrated the market-beating potential of this tactic if you know what to do (learn more here).
What's more, let's study the recent info surrounding Rubicon Technology, Inc. (NASDAQ:RBCN).
Hedge fund activity in Rubicon Technology, Inc. (NASDAQ:RBCN)
At Q2's end, a total of 7 of the hedge funds we track held long positions in this stock, a change of 0% from one quarter earlier. With the smart money's positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their stakes substantially.
Out of the hedge funds we follow, Royce & Associates, managed by Chuck Royce, holds the biggest position in Rubicon Technology, Inc. (NASDAQ:RBCN). Royce & Associates has a $12.9 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 $11.3 million position; 0.2% of its 13F portfolio is allocated to the stock. Other hedge funds that are bullish include John Burbank's Passport Capital, Gregory A. Weaver's Invicta Capital Management and Matthew Hulsizer's PEAK6 Capital Management.
Judging by the fact that Rubicon Technology, Inc. (NASDAQ:RBCN) has faced a fall in interest from upper-tier hedge fund managers, logic holds that there is a sect of hedgies who were dropping their positions entirely heading into Q2. Intriguingly, Christopher Zepf and Brian Thonn's Kingdom Ridge Capital cut the largest position of the "upper crust" of funds we watch, worth close to $1.7 million in stock. Jim Simons's fund, Renaissance Technologies, also dumped its stock, about $0.2 million worth. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What do corporate executives and insiders think about Rubicon Technology, Inc. (NASDAQ:RBCN)?
Bullish insider trading is at its handiest when the company in focus has seen transactions within the past half-year. Over the latest half-year time period, Rubicon Technology, Inc. (NASDAQ:RBCN) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll also review the relationship between both of these indicators in other stocks similar to Rubicon Technology, Inc. (NASDAQ:RBCN). These stocks are MaxLinear, Inc. (NYSE:MXL), Ultra Clean Holdings Inc (NASDAQ:UCTT), Actions Semiconductor Co., Ltd. (ADR) (NASDAQ:ACTS), Sigma Designs Inc (NASDAQ:SIGM), and Canadian Solar Inc. (NASDAQ:CSIQ). This group of stocks belong to the semiconductor - specialized industry and their market caps are closest to RBCN's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
MaxLinear, Inc. (NYSE:MXL)
Ultra Clean Holdings Inc (NASDAQ:UCTT)
Actions Semiconductor Co., Ltd. (ADR) (NASDAQ:ACTS)
Sigma Designs Inc (NASDAQ:SIGM)
Canadian Solar Inc. (NASDAQ:CSIQ)
Using the results demonstrated by the previously mentioned research, average investors should always keep one eye on hedge fund and insider trading sentiment, and Rubicon Technology, Inc. (NASDAQ:RBCN) is an important part of this process.