Should Beazer Homes USA, Inc. (NYSE:BZH) investors track the following data?
In the 21st century investor’s toolkit, there are a multitude of indicators shareholders can use to analyze the equity markets. A duo of the most under-the-radar 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 best hedge fund managers can outclass their index-focused peers by a superb margin (see just how much).
Just as crucial, bullish insider trading activity is a second way to analyze the financial markets. As the old adage goes: there are many motivations for a corporate insider to sell shares of his or her company, but only one, very obvious reason why they would buy. Many academic studies have demonstrated the valuable potential of this tactic if you know what to do (learn more here).
Thus, it’s important to examine the recent info about Beazer Homes USA, Inc. (NYSE:BZH).
How are hedge funds trading Beazer Homes USA, Inc. (NYSE:BZH)?
At the end of the second quarter, a total of 17 of the hedge funds we track were bullish in this stock, a change of 0% from one quarter earlier. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their holdings significantly.
When using filings from the hedgies we track, Highbridge Capital Management, managed by Glenn Russell Dubin, holds the biggest position in Beazer Homes USA, Inc. (NYSE:BZH). Highbridge Capital Management has a $27.2 million position in the stock, comprising 0.3% of its 13F portfolio. On Highbridge Capital Management’s heels is Citadel Investment Group, managed by Ken Griffin, which held a $25.1 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining peers that are bullish include David Tepper’s Appaloosa Management LP, Brian Taylor’s Pine River Capital Management and Don Morgan’s Brigade Capital.
Because Beazer Homes USA, Inc. (NYSE:BZH) has experienced declining interest from the entirety of the hedge funds we track, we can see that there lies a certain “tier” of hedgies that decided to sell off their entire stakes heading into Q2. Interestingly, Michael Platt and William Reeves’s BlueCrest Capital Mgmt. dumped the largest stake of all the hedgies we track, comprising an estimated $4.2 million in stock. Bruce Kovner’s fund, Caxton Associates LP, also sold off its stock, about $3.2 million worth. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Insider trading activity in Beazer Homes USA, Inc. (NYSE:BZH)
Bullish insider trading is particularly usable when the primary stock in question has experienced transactions within the past half-year. Over the latest half-year time frame, Beazer Homes USA, Inc. (NYSE:BZH) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Beazer Homes USA, Inc. (NYSE:BZH). These stocks are AV Homes Inc (NASDAQ:AVHI), Gafisa SA (ADR) (NYSE:GFA), Hovnanian Enterprises, Inc. (NYSE:HOV), M/I Homes Inc (NYSE:MHO), and Xinyuan Real Estate Co., Ltd. (ADR) (NYSE:XIN). This group of stocks are in the residential construction industry and their market caps match BZH’s market cap.