What’s a smart Dril-Quip, Inc. (NYSE:DRQ) investor to do?
In the financial world, there are a multitude of indicators market participants can use to monitor the equity markets. A pair of the best are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top investment managers can beat the S&P 500 by a healthy margin (see just how much).
Equally as necessary, bullish insider trading activity is another way to look at the financial markets. Obviously, there are a number of stimuli for a corporate insider to downsize shares of his or her company, but just one, very obvious reason why they would behave bullishly. Various academic studies have demonstrated the valuable potential of this method if investors understand what to do (learn more here).
What’s more, let’s examine the latest info about Dril-Quip, Inc. (NYSE:DRQ).
Hedge fund activity in Dril-Quip, Inc. (NYSE:DRQ)
In preparation for the third quarter, a total of 19 of the hedge funds we track were bullish in this stock, a change of 90% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their stakes considerably.
According to our 13F database, Israel Englander’s Millennium Management had the largest position in Dril-Quip, Inc. (NYSE:DRQ), worth close to $40.1 million, accounting for 0.1% of its total 13F portfolio. The second largest stake is held by Fisher Asset Management, managed by Ken Fisher, which held a $35.7 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining hedge funds with similar optimism include Clint Carlson’s Carlson Capital, SAC Subsidiary’s Sigma Capital Management and Steven Cohen’s SAC Capital Advisors.
As industrywide interest increased, certain money managers were breaking ground themselves. Millennium Management, managed by Israel Englander, established the most valuable position in Dril-Quip, Inc. (NYSE:DRQ). Millennium Management had 40.1 million invested in the company at the end of the quarter. Ken Fisher’s Fisher Asset Management also initiated a $35.7 million position during the quarter. The other funds with brand new DRQ positions are Clint Carlson’s Carlson Capital, SAC Subsidiary’s Sigma Capital Management, and Steven Cohen’s SAC Capital Advisors.
How are insiders trading Dril-Quip, Inc. (NYSE:DRQ)?
Bullish insider trading is best served when the company we’re looking at has seen transactions within the past six months. Over the last 180-day time period, Dril-Quip, Inc. (NYSE:DRQ) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Dril-Quip, Inc. (NYSE:DRQ). These stocks are Forum Energy Technologies Inc (NYSE:FET), MDU Resources Group Inc (NYSE:MDU), Oil States International, Inc. (NYSE:OIS), Superior Energy Services, Inc. (NYSE:SPN), and RPC, Inc. (NYSE:RES). This group of stocks are the members of the oil & gas equipment & services industry and their market caps match DRQ’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Forum Energy Technologies Inc (NYSE:FET) | 3 | 0 | 0 |
| MDU Resources Group Inc (NYSE:MDU) | 9 | 0 | 0 |
| Oil States International, Inc. (NYSE:OIS) | 35 | 0 | 0 |
| Superior Energy Services, Inc. (NYSE:SPN) | 24 | 0 | 0 |
| RPC, Inc. (NYSE:RES) | 13 | 0 | 0 |
Using the returns shown by Insider Monkey’s studies, average investors should always pay attention to hedge fund and insider trading sentiment, and Dril-Quip, Inc. (NYSE:DRQ) applies perfectly to this mantra.
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