Leggett & Platt, Inc. (NYSE:LEG) was in 12 hedge funds’ portfolio at the end of March. LEG investors should pay attention to a decrease in hedge fund sentiment in recent months. There were 16 hedge funds in our database with LEG holdings at the end of the previous quarter.
In the 21st century investor’s toolkit, there are many gauges market participants can use to watch stocks. Some of the best are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite hedge fund managers can beat the S&P 500 by a healthy margin (see just how much).
Just as important, optimistic insider trading sentiment is another way to parse down the financial markets. There are lots of reasons for an insider to sell shares of his or her company, but just one, very obvious reason why they would buy. Plenty of academic studies have demonstrated the market-beating potential of this tactic if investors know what to do (learn more here).
Now, it’s important to take a gander at the key action encompassing Leggett & Platt, Inc. (NYSE:LEG).
How are hedge funds trading Leggett & Platt, Inc. (NYSE:LEG)?
At Q1’s end, a total of 12 of the hedge funds we track were long in this stock, a change of -25% from the previous quarter. With hedgies’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their holdings substantially.
According to our comprehensive database, Kensico Capital, managed by Michael Lowenstein, holds the most valuable position in Leggett & Platt, Inc. (NYSE:LEG). Kensico Capital has a $42.2 million position in the stock, comprising 1.1% of its 13F portfolio. On Kensico Capital’s heels is Winton Capital Management, managed by David Harding, which held a $18.9 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Ric Dillon’s Diamond Hill Capital, and Matthew Hulsizer’s PEAK6 Capital Management.
Since Leggett & Platt, Inc. (NYSE:LEG) has witnessed bearish sentiment from hedge fund managers, logic holds that there were a few hedgies that elected to cut their full holdings heading into Q2. At the top of the heap, Israel Englander’s Millennium Management said goodbye to the largest stake of the “upper crust” of funds we key on, totaling close to $5.8 million in stock., and Phill Gross and Robert Atchinson of Adage Capital Management was right behind this move, as the fund said goodbye to about $2.6 million worth. These moves are important to note, as total hedge fund interest dropped by 4 funds heading into Q2.
Insider trading activity in Leggett & Platt, Inc. (NYSE:LEG)
Insider purchases made by high-level executives is at its handiest when the primary stock in question has seen transactions within the past six months. Over the latest six-month time frame, Leggett & Platt, Inc. (NYSE:LEG) has seen zero unique insiders buying, and 12 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Leggett & Platt, Inc. (NYSE:LEG). These stocks are La-Z-Boy Incorporated (NYSE:LZB), Select Comfort Corp. (NASDAQ:SCSS), Mattress Firm Holding Corp (NASDAQ:MFRM), Tempur-Pedic International Inc. (NYSE:TPX), and Fortune Brands Home & Security Inc (NYSE:FBHS). This group of stocks belong to the home furnishings & fixtures industry and their market caps resemble LEG’s market cap.