Nordson Corporation (NASDAQ:NDSN) was in 18 hedge funds' portfolio at the end of March. NDSN shareholders have witnessed an increase in hedge fund sentiment lately. There were 15 hedge funds in our database with NDSN holdings at the end of the previous quarter.
At the moment, there are plenty of indicators investors can use to watch stocks. Some of the best are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite money managers can trounce the S&P 500 by a superb margin (see just how much).
Just as important, bullish insider trading activity is a second way to parse down the stock market universe. As the old adage goes: there are a variety of stimuli for a bullish insider to drop shares of his or her company, but just one, very obvious reason why they would behave bullishly. Several empirical studies have demonstrated the market-beating potential of this tactic if "monkeys" understand what to do (learn more here).
Now, let's take a glance at the latest action surrounding Nordson Corporation (NASDAQ:NDSN).
In preparation for this quarter, a total of 18 of the hedge funds we track held long positions in this stock, a change of 20% from the previous quarter. With the smart money's sentiment swirling, there exists an "upper tier" of key hedge fund managers who were boosting their stakes substantially.
According to our comprehensive database, Chuck Royce's Royce & Associates had the most valuable position in Nordson Corporation (NASDAQ:NDSN), worth close to $76.9 million, accounting for 0.2% of its total 13F portfolio. On Royce & Associates's heels is Renaissance Technologies, managed by Jim Simons, which held a $17.3 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedge funds that hold long positions include Donald Chiboucis's Columbus Circle Investors, Israel Englander's Millennium Management and Cliff Asness's AQR Capital Management.
Consequently, key hedge funds were breaking ground themselves. Catapult Capital Management, managed by Israel Englander, established the most valuable position in Nordson Corporation (NASDAQ:NDSN). Catapult Capital Management had 2.3 million invested in the company at the end of the quarter. Noam Gottesman's GLG Partners also made a $2.2 million investment in the stock during the quarter. The other funds with brand new NDSN positions are Steven Cohen's SAC Capital Advisors, Jacob Gottlieb's Visium Asset Management, and Mike Vranos's Ellington.
Insider buying is most useful when the company in question has experienced transactions within the past 180 days. Over the last 180-day time frame, Nordson Corporation (NASDAQ:NDSN) has seen 1 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
Let's check out hedge fund and insider activity in other stocks similar to Nordson Corporation (NASDAQ:NDSN). These stocks are SPX Corporation (NYSE:SPW), Dresser-Rand Group Inc. (NYSE:DRC), IDEX Corporation (NYSE:IEX), Colfax Corp (NYSE:CFX), and Avery Dennison Corp (NYSE:AVY). All of these stocks are in the diversified machinery industry and their market caps resemble NDSN's market cap.