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Albemarle Corporation (ALB): Are Hedge Funds Right About This Stock?

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Albemarle Corporation (NYSE:ALB) investors: listen here.

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Albemarle Corporation

Now that that’s out of the way, we’re going to discuss the recent info surrounding Albemarle Corporation (NYSE:ALB).

What does the smart money think about Albemarle Corporation (NYSE:ALB)?

In preparation for the third quarter, a total of 14 of the hedge funds we track held long positions in this stock, a change of -18% from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes substantially.

Out of the hedge funds we follow, Thomas E. Claugus’s GMT Capital had the biggest position in Albemarle Corporation (NYSE:ALB), worth close to $50 million, comprising 1.1% of its total 13F portfolio. Coming in second is Gates Capital Management, managed by Jeffrey Gates, which held a $45.9 million position; the fund has 2.1% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Rob Butts and Josh Clark’s Southpoint Capital Advisors, Chuck Royce’s Royce & Associates and Amy Minella’s Cardinal Capital.

Since Albemarle Corporation (NYSE:ALB) has witnessed a fall in interest from the entirety of the hedge funds we track, logic holds that there is a sect of fund managers who sold off their positions entirely last quarter. Interestingly, Jeffrey Ubben’s ValueAct Capital dumped the biggest position of the “upper crust” of funds we watch, valued at an estimated $59.8 million in stock. Martin D. Sass’s fund, MD Sass, also said goodbye to its stock, about $29 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest fell by 3 funds last quarter.

What have insiders been doing with Albemarle Corporation (NYSE:ALB)?

Bullish insider trading is particularly usable when the company in question has experienced transactions within the past 180 days. Over the latest 180-day time frame, Albemarle Corporation (NYSE:ALB) has experienced zero unique insiders buying, 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 Albemarle Corporation (NYSE:ALB). These stocks are Westlake Chemical Corporation (NYSE:WLK), International Flavors & Fragrances Inc (NYSE:IFF), Rockwood Holdings, Inc. (NYSE:ROC), W.R. Grace & Co. (NYSE:GRA), and The Valspar Corporation (NYSE:VAL). This group of stocks are the members of the specialty chemicals industry and their market caps are similar to ALB’s market cap.

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