Is Texas Industries, Inc. (NYSE:TXI) a good investment?
In the financial world, there are a multitude of indicators shareholders can use to watch Mr. Market. A duo of the best are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top money managers can outperform the broader indices by a very impressive margin (see just how much).
Just as useful, bullish insider trading sentiment is another way to look at the stock market universe. Obviously, there are a number of incentives for a corporate insider to get rid of shares of his or her company, but only one, very simple reason why they would behave bullishly. Plenty of academic studies have demonstrated the market-beating potential of this tactic if you understand where to look (learn more here).
Furthermore, we're going to discuss the latest info for Texas Industries, Inc. (NYSE:TXI).
At the end of the second quarter, a total of 13 of the hedge funds we track were bullish in this stock, a change of -19% from the first quarter. With hedgies' sentiment swirling, there exists a few noteworthy hedge fund managers who were boosting their holdings substantially.
When using filings from the hedgies we track, Mason Hawkins's Southeastern Asset Management had the biggest position in Texas Industries, Inc. (NYSE:TXI), worth close to $533.1 million, comprising 2.6% of its total 13F portfolio. The second largest stake is held by Columbus Circle Investors, managed by Donald Chiboucis, which held a $53.8 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include Mario Gabelli's GAMCO Investors, Chuck Royce's Royce & Associates and Brian Ashford-Russell and Tim Woolley's Polar Capital.
Judging by the fact that Texas Industries, Inc. (NYSE:TXI) has witnessed dropping sentiment from the top-tier hedge fund industry, it's easy to see that there is a sect of fund managers who sold off their full holdings heading into Q2. Interestingly, Alexander Mitchell's Scopus Asset Management dropped the largest stake of the "upper crust" of funds we key on, comprising close to $9.6 million in stock, and Andrew Sandler of Sandler Capital Management was right behind this move, as the fund sold off about $9.1 million worth. These moves are interesting, as total hedge fund interest was cut by 3 funds heading into Q2.
Insider buying is at its handiest when the company in focus has experienced transactions within the past half-year. Over the latest six-month time period, Texas Industries, Inc. (NYSE:TXI) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Using the results explained by the previously mentioned studies, average investors must always watch hedge fund and insider trading activity, and Texas Industries, Inc. (NYSE:TXI) is an important part of this process.