DXP Enterprises Inc (NASDAQ:DXPE) was in 8 hedge funds’ portfolio at the end of March. DXPE shareholders have witnessed an increase in support from the world’s most elite money managers of late. There were 5 hedge funds in our database with DXPE positions at the end of the previous quarter.
To the average investor, there are many indicators market participants can use to track the equity markets. Two 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 best hedge fund managers can outclass the market by a solid margin (see just how much).
Equally as beneficial, bullish insider trading activity is another way to break down the stock market universe. There are a number of incentives for a corporate insider to sell shares of his or her company, but just one, very simple reason why they would behave bullishly. Several empirical studies have demonstrated the useful potential of this tactic if “monkeys” understand what to do (learn more here).
Keeping this in mind, let’s take a glance at the latest action encompassing DXP Enterprises Inc (NASDAQ:DXPE).
What does the smart money think about DXP Enterprises Inc (NASDAQ:DXPE)?
At the end of the first quarter, a total of 8 of the hedge funds we track held long positions in this stock, a change of 60% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their stakes substantially.
According to our comprehensive database, Jim Simons’s Renaissance Technologies had the most valuable position in DXP Enterprises Inc (NASDAQ:DXPE), worth close to $1.8 million, comprising less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is AQR Capital Management, managed by Cliff Asness, which held a $1.4 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other peers that are bullish include Neil Chriss’s Hutchin Hill Capital, and Richard Driehaus’s Driehaus Capital.
With a general bullishness amongst the heavyweights, specific money managers have been driving this bullishness. Hutchin Hill Capital, managed by Neil Chriss, initiated the most valuable position in DXP Enterprises Inc (NASDAQ:DXPE). Hutchin Hill Capital had 1.3 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also initiated a $1.2 million position during the quarter. The other funds with new positions in the stock are D. E. Shaw’s D E Shaw, John Overdeck and David Siegel’s Two Sigma Advisors, and Steven Cohen’s SAC Capital Advisors.
How have insiders been trading DXP Enterprises Inc (NASDAQ:DXPE)?
Insider purchases made by high-level executives is most useful when the company in question has seen transactions within the past six months. Over the latest 180-day time frame, DXP Enterprises Inc (NASDAQ:DXPE) has seen 1 unique insiders purchasing, and 3 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to DXP Enterprises Inc (NASDAQ:DXPE). These stocks are Applied Industrial Technologies (NYSE:AIT), Newport Corporation (NASDAQ:NEWP), Susser Petroleum Partners LP (NYSE:SUSP), Wesco Aircraft Holdings Inc (NYSE:WAIR), and RTI International Metals, Inc. (NYSE:RTI). All of these stocks are in the industrial equipment wholesale industry and their market caps are similar to DXPE’s market cap.