What should smart American Railcar Industries, Inc. (NASDAQ:ARII) investors do?
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Just as necessary, optimistic insider trading activity is a second way to look at the marketplace. Obviously, there are a variety of incentives for an executive to cut shares of his or her company, but only one, very obvious reason why they would buy. Plenty of academic studies have demonstrated the useful potential of this tactic if piggybackers understand what to do (learn more here).
What's more, we're going to discuss the latest info for American Railcar Industries, Inc. (NASDAQ:ARII).
In preparation for the third quarter, a total of 12 of the hedge funds we track were bullish in this stock, a change of -20% from the first quarter. With hedge funds' capital changing hands, there exists a few notable hedge fund managers who were boosting their holdings substantially.
Out of the hedge funds we follow, Carl Icahn's Icahn Capital LP had the most valuable position in American Railcar Industries, Inc. (NASDAQ:ARII), worth close to $397.8 million, accounting for 1.8% of its total 13F portfolio. The second largest stake is held by Chuck Royce of Royce & Associates, with a $10.7 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other hedgies that hold long positions include Matthew Hulsizer's PEAK6 Capital Management, Israel Englander's Millennium Management and Murray Stahl's Horizon Asset Management.
As American Railcar Industries, Inc. (NASDAQ:ARII) has faced bearish sentiment from the smart money's best and brightest, it's safe to say that there was a specific group of money managers that decided to sell off their entire stakes last quarter. At the top of the heap, Ken Griffin's Citadel Investment Group cut the largest stake of the 450+ funds we monitor, valued at about $1.3 million in stock, and John Overdeck and David Siegel of Two Sigma Advisors was right behind this move, as the fund said goodbye to about $0.9 million worth. These transactions are intriguing to say the least, as total hedge fund interest dropped by 3 funds last quarter.
Bullish insider trading is particularly usable when the company in focus has seen transactions within the past six months. Over the latest six-month time period, American Railcar Industries, Inc. (NASDAQ:ARII) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll go over the relationship between both of these indicators in other stocks similar to American Railcar Industries, Inc. (NASDAQ:ARII). These stocks are Westinghouse Air Brake Technologies Corp (NYSE:WAB), FreightCar America, Inc. (NASDAQ:RAIL), Trinity Industries, Inc. (NYSE:TRN), Guangshen Railway Co. Ltd (ADR) (NYSE:GSH), and Greenbrier Companies Inc (NYSE:GBX). This group of stocks are in the railroads industry and their market caps are similar to ARII's market cap.