Is it smart to be bullish on Denbury Resources Inc. (NYSE:DNR)?
At the moment, there are dozens of gauges investors can use to analyze the equity markets. A couple of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best hedge fund managers can beat the S&P 500 by a healthy margin (see just how much).
Equally as key, positive insider trading sentiment is a second way to analyze the financial markets. Obviously, there are plenty of stimuli for an executive to drop shares of his or her company, but just one, very obvious reason why they would buy. Several empirical studies have demonstrated the valuable potential of this strategy if shareholders understand what to do (learn more here).
Thus, it’s important to examine the recent info for Denbury Resources Inc. (NYSE:DNR).
Hedge fund activity in Denbury Resources Inc. (NYSE:DNR)
In preparation for the third quarter, a total of 21 of the hedge funds we track were bullish in this stock, a change of 11% from the first quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings meaningfully.
According to our 13F database, Leon Cooperman’s Omega Advisors had the largest position in Denbury Resources Inc. (NYSE:DNR), worth close to $61.8 million, comprising 0.9% of its total 13F portfolio. Sitting at the No. 2 spot is George Soros of Soros Fund Management, with a $33.9 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Other peers that are bullish include Ric Dillon’s Diamond Hill Capital, D. E. Shaw’s D E Shaw and Israel Englander’s Millennium Management.
Now, particular hedge funds have jumped into Denbury Resources Inc. (NYSE:DNR) headfirst. Omega Advisors, managed by Leon Cooperman, initiated the largest position in Denbury Resources Inc. (NYSE:DNR). Omega Advisors had 61.8 million invested in the company at the end of the quarter. George Soros’s Soros Fund Management also made a $33.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Ric Dillon’s Diamond Hill Capital, D. E. Shaw’s D E Shaw, and Israel Englander’s Millennium Management.
How are insiders trading Denbury Resources Inc. (NYSE:DNR)?
Insider buying is most useful when the company in question has seen transactions within the past 180 days. Over the latest 180-day time period, Denbury Resources Inc. (NYSE:DNR) has experienced 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 Denbury Resources Inc. (NYSE:DNR). These stocks are National Fuel Gas Co. (NYSE:NFG), Baytex Energy Corp (USA) (NYSE:BTE), Linn Energy LLC (NASDAQ:LINE), Plains Exploration & Production Company (NYSE:PXP), and Cimarex Energy Co (NYSE:XEC). This group of stocks belong to the independent oil & gas industry and their market caps resemble DNR’s market cap.