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Do Hedge Funds and Insiders Love Denbury Resources Inc. (NYSE:DNR)?

Is Denbury Resources Inc. (NYSE:DNR) the right investment to pursue these days? Hedge funds are reducing their bets on the stock. The number of bullish hedge fund positions retreated by 9 in recent months.

Denbury Resources Inc. (NYSE:DNR)

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Equally as key, optimistic insider trading activity is another way to break down the investments you’re interested in. Obviously, there are many incentives for an executive to get rid of shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Several academic studies have demonstrated the impressive potential of this method if piggybackers understand what to do (learn more here).

Now, let’s take a gander at the key action regarding Denbury Resources Inc. (NYSE:DNR).

What have hedge funds been doing with Denbury Resources Inc. (NYSE:DNR)?

At the end of the fourth quarter, a total of 16 of the hedge funds we track were long in this stock, a change of -36% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their stakes considerably.

According to our comprehensive database, Leon Cooperman’s Omega Advisors had the largest position in Denbury Resources Inc. (NYSE:DNR), worth close to $67 million, accounting for 1.2% of its total 13F portfolio. Sitting at the No. 2 spot is Ric Dillon of Diamond Hill Capital, with a $20 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include D. E. Shaw’s D E Shaw, Phill Gross and Robert Atchinson’s Adage Capital Management and John Overdeck and David Siegel’s Two Sigma Advisors.

Since Denbury Resources Inc. (NYSE:DNR) has witnessed declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of funds that slashed their full holdings at the end of the year. Intriguingly, George Soros’s Soros Fund Management dropped the biggest position of the “upper crust” of funds we watch, totaling about $69 million in stock.. Peter Rathjens, Bruce Clarke and John Campbell’s fund, Arrowstreet Capital, also said goodbye to its stock, about $28 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 9 funds at the end of the year.

What do corporate executives and insiders think about Denbury Resources Inc. (NYSE:DNR)?

Insider buying is at its handiest when the primary stock in question has experienced transactions within the past 180 days. Over the last 180-day time frame, Denbury Resources Inc. (NYSE:DNR) has experienced 6 unique insiders purchasing, and 4 insider sales (see the details of insider trades here).

With the returns shown by Insider Monkey’s strategies, everyday investors should always monitor hedge fund and insider trading sentiment, and Denbury Resources Inc. (NYSE:DNR) is no exception.

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

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