Cabot Oil & Gas Corporation (NYSE:COG): Hedge Funds and Insiders Are Bearish, What Should You Do?

Cabot Oil & Gas Corporation (NYSE:COG) shareholders have witnessed a decrease in activity from the world’s largest hedge funds lately.

Cabot Oil and Gas (COG)

In the financial world, there are dozens of methods shareholders can use to monitor publicly traded companies. Some of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite money managers can outperform their index-focused peers by a significant amount (see just how much).

Just as integral, positive insider trading activity is a second way to break down the financial markets. Just as you’d expect, there are many incentives for an insider to get rid of shares of his or her company, but just one, very clear reason why they would buy. Several empirical studies have demonstrated the market-beating potential of this strategy if piggybackers understand where to look (learn more here).

Consequently, we’re going to take a glance at the latest action encompassing Cabot Oil & Gas Corporation (NYSE:COG).

What does the smart money think about Cabot Oil & Gas Corporation (NYSE:COG)?

At year’s end, a total of 31 of the hedge funds we track held long positions in this stock, a change of -6% from one quarter earlier. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings meaningfully.

Of the funds we track, Ken Griffin’s Citadel Investment Group had the biggest position in Cabot Oil & Gas Corporation (NYSE:COG), worth close to $133 million, comprising 0.2% of its total 13F portfolio. Coming in second is Donald Chiboucis of Columbus Circle Investors, with a $80 million position; 0.4% of its 13F portfolio is allocated to the stock. Other hedge funds with similar optimism include D. E. Shaw’s D E Shaw, Sean Cullinan’s Point State Capital and Phill Gross and Robert Atchinson’s Adage Capital Management.

Due to the fact that Cabot Oil & Gas Corporation (NYSE:COG) has witnessed falling interest from the aggregate hedge fund industry, we can see that there exists a select few fund managers that elected to cut their entire stakes heading into 2013. Interestingly, Dan Loeb’s Third Point cut the biggest investment of all the hedgies we monitor, worth about $79 million in stock.. Andreas Halvorsen’s fund, Viking Global, also cut its stock, about $25 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 2 funds heading into 2013.

How have insiders been trading Cabot Oil & Gas Corporation (NYSE:COG)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company in focus has seen transactions within the past six months. Over the last six-month time period, Cabot Oil & Gas Corporation (NYSE:COG) has experienced zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

With the results demonstrated by our tactics, retail investors should always keep an eye on hedge fund and insider trading sentiment, and Cabot Oil & Gas Corporation (NYSE:COG) is an important part of this process.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!