In the 21st century investor’s toolkit, there are plenty of gauges market participants can use to analyze Mr. Market. Two of the best are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best hedge fund managers can beat their index-focused peers by a significant amount (see just how much).
Equally as useful, optimistic insider trading sentiment is another way to analyze the world of equities. Obviously, there are plenty of incentives for a bullish insider to sell shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the market-beating potential of this strategy if piggybackers understand what to do (learn more here).
Keeping this in mind, let’s examine the recent info about The Goodyear Tire & Rubber Company (NASDAQ:GT).
How are hedge funds trading The Goodyear Tire & Rubber Company (NASDAQ:GT)?
At Q2’s end, a total of 33 of the hedge funds we track were long in this stock, a change of 10% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were boosting their holdings significantly.
With a general bullishness amongst the titans, certain bigger names have been driving this bullishness. Appaloosa Management LP, managed by David Tepper, established the largest position in The Goodyear Tire & Rubber Company (NASDAQ:GT). Appaloosa Management LP had 336.4 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also made a $142.6 million investment in the stock during the quarter. The following funds were also among the new GT investors: Phill Gross and Robert Atchinson’s Adage Capital Management, Cliff Asness’s AQR Capital Management, and SAC Subsidiary’s CR Intrinsic Investors.
What do corporate executives and insiders think about The Goodyear Tire & Rubber Company (NASDAQ:GT)?
Insider buying is most useful when the primary stock in question has seen transactions within the past six months. Over the last six-month time frame, The Goodyear Tire & Rubber Company (NASDAQ:GT) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to The Goodyear Tire & Rubber Company (NASDAQ:GT). These stocks are Tredegar Corporation (NYSE:TG), Titan International Inc (NYSE:TWI), Cooper Tire & Rubber Company (NYSE:CTB), Berry Plastics Group Inc (NYSE:BERY), and Carlisle Companies, Inc. (NYSE:CSL). This group of stocks are the members of the rubber & plastics industry and their market caps are similar to GT’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Tredegar Corporation (NYSE:TG) | 5 | 0 | 3 |
| Titan International Inc (NYSE:TWI) | 15 | 0 | 0 |
| Cooper Tire & Rubber Company (NYSE:CTB) | 30 | 0 | 0 |
| Berry Plastics Group Inc (NYSE:BERY) | 23 | 0 | 8 |
| Carlisle Companies, Inc. (NYSE:CSL) | 22 | 0 | 3 |
Using the results explained by our strategies, average investors should always keep one eye on hedge fund and insider trading sentiment, and The Goodyear Tire & Rubber Company (NASDAQ:GT) shareholders fit into this picture quite nicely.
