To the average investor, there are many indicators shareholders can use to track the equity markets. Two of the most underrated 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 top money managers can outperform the market by a healthy margin (see just how much).
Equally as integral, bullish insider trading sentiment is a second way to parse down the investments you’re interested in. Just as you’d expect, there are a number of stimuli for an executive to downsize shares of his or her company, but just one, very clear reason why they would buy. Plenty of empirical studies have demonstrated the useful potential of this strategy if shareholders understand what to do (learn more here).
Now, let’s take a look at the latest action surrounding Accuride Corporation (NYSE:ACW).
How are hedge funds trading Accuride Corporation (NYSE:ACW)?
At the end of the fourth quarter, a total of 7 of the hedge funds we track held long positions in this stock, a change of -22% from the previous quarter. With hedgies’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their stakes considerably.
Due to the fact that Accuride Corporation (NYSE:ACW) has faced a declination in interest from the aggregate hedge fund industry, it’s easy to see that there exists a select few fund managers that slashed their full holdings at the end of the year. Intriguingly, David Gallo’s Valinor Management LLC cut the biggest position of the “upper crust” of funds we watch, comprising an estimated $19.1 million in stock., and Jacob Gottlieb of Visium Asset Management was right behind this move, as the fund said goodbye to about $0.6 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 2 funds at the end of the year.
What have insiders been doing with Accuride Corporation (NYSE:ACW)?
Insider buying is most useful when the primary stock in question has seen transactions within the past 180 days. Over the last six-month time period, Accuride Corporation (NYSE:ACW) has seen 2 unique insiders buying, and 1 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Accuride Corporation (NYSE:ACW). These stocks are Navistar International Corp (NYSE:NAV), Supreme Industries, Inc. (NYSEAMEX:STS), Hyster-Yale Materials Handling Inc (NYSE:HY), Wabash National Corporation (NYSE:WNC), and Spartan Motors Inc (NASDAQ:SPAR). This group of stocks are the members of the trucks & other vehicles industry and their market caps resemble ACW’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Navistar International Corp (NYSE:NAV) | 18 | 3 | 1 |
| Supreme Industries, Inc. (NYSEAMEX:STS) | 2 | 2 | 0 |
| Hyster-Yale Materials Handling Inc (NYSE:HY) | 11 | 2 | 0 |
| Wabash National Corporation (NYSE:WNC) | 13 | 0 | 1 |
| Spartan Motors Inc (NASDAQ:SPAR) | 6 | 0 | 1 |
With the returns demonstrated by Insider Monkey’s tactics, retail investors should always keep an eye on hedge fund and insider trading sentiment, and Accuride Corporation (NYSE:ACW) is no exception.
