Is Markel Corporation (NYSE:MKL) a buy?
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Just as useful, positive insider trading sentiment is a second way to analyze the investments you’re interested in. Just as you’d expect, there are plenty of motivations for an executive to sell shares of his or her company, but just one, very simple reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the useful potential of this strategy if “monkeys” know what to do (learn more here).
Furthermore, let’s analyze the newest info surrounding Markel Corporation (NYSE:MKL).
What does the smart money think about Markel Corporation (NYSE:MKL)?
At the end of the second quarter, a total of 22 of the hedge funds we track held long positions in this stock, a change of 47% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their holdings meaningfully.
Now, certain bigger names have jumped into Markel Corporation (NYSE:MKL) headfirst. Select Equity Group, managed by Robert Joseph Caruso, assembled the most valuable position in Markel Corporation (NYSE:MKL). Select Equity Group had 201.7 million invested in the company at the end of the quarter. Charles Akre’s Akre Capital Management also initiated a $129.7 million position during the quarter. The other funds with new positions in the stock are Chuck Royce’s Royce & Associates, Brian Ashford-Russell and Tim Woolley’s Polar Capital, and Murray Stahl’s Horizon Asset Management.
Insider trading activity in Markel Corporation (NYSE:MKL)
Bullish insider trading is most useful when the company we’re looking at has seen transactions within the past six months. Over the latest half-year time frame, Markel Corporation (NYSE:MKL) has experienced 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 Markel Corporation (NYSE:MKL). These stocks are Validus Holdings, Ltd. (NYSE:VR), American Financial Group (NYSE:AFG), HCC Insurance Holdings, Inc. (NYSE:HCC), Partnerre Ltd (NYSE:PRE), and Axis Capital Holdings Limited (NYSE:AXS). This group of stocks are the members of the property & casualty insurance industry and their market caps are closest to MKL’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Validus Holdings, Ltd. (NYSE:VR) | 23 | 0 | 0 |
| American Financial Group (NYSE:AFG) | 19 | 0 | 0 |
| HCC Insurance Holdings, Inc. (NYSE:HCC) | 17 | 0 | 0 |
| Partnerre Ltd (NYSE:PRE) | 18 | 0 | 0 |
| Axis Capital Holdings Limited (NYSE:AXS) | 18 | 0 | 0 |
Using the results demonstrated by the previously mentioned tactics, regular investors should always keep one eye on hedge fund and insider trading sentiment, and Markel Corporation (NYSE:MKL) shareholders fit into this picture quite nicely.
