Is Noble Corporation (NYSE:NE) a good buy?
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Just as crucial, bullish insider trading sentiment is a second way to analyze the investments you're interested in. As the old adage goes: there are a variety of incentives for an executive to get rid of shares of his or her company, but only one, very simple reason why they would behave bullishly. Several empirical studies have demonstrated the impressive potential of this tactic if you know what to do (learn more here).
What's more, it's important to examine the latest info surrounding Noble Corporation (NYSE:NE).
At Q2's end, a total of 43 of the hedge funds we track held long positions in this stock, a change of 19% from one quarter earlier. With the smart money's capital changing hands, there exists a few noteworthy hedge fund managers who were upping their stakes significantly.
When using filings from the hedgies we track, Jeffrey Tannenbaum's Fir Tree had the most valuable position in Noble Corporation (NYSE:NE), worth close to $418.4 million, comprising 5.8% of its total 13F portfolio. The second largest stake is held by David Gallo of Valinor Management LLC, with a $135.4 million position; 5.6% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism include Frank Brosens's Taconic Capital, Phill Gross and Robert Atchinson's Adage Capital Management and Ken Griffin's Citadel Investment Group.
As aggregate interest spiked, particular hedge funds have been driving this bullishness. Fir Tree, managed by Jeffrey Tannenbaum, assembled the most valuable position in Noble Corporation (NYSE:NE). Fir Tree had 418.4 million invested in the company at the end of the quarter. David Gallo's Valinor Management LLC also made a $135.4 million investment in the stock during the quarter. The other funds with brand new NE positions are Frank Brosens's Taconic Capital, Phill Gross and Robert Atchinson's Adage Capital Management, and Ken Griffin's Citadel Investment Group.
Bullish insider trading is at its handiest when the primary stock in question has experienced transactions within the past 180 days. Over the last 180-day time frame, Noble Corporation (NYSE:NE) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll go over the relationship between both of these indicators in other stocks similar to Noble Corporation (NYSE:NE). These stocks are ENSCO PLC (NYSE:ESV), Cheniere Energy, Inc. (NYSEAMEX:LNG), Markwest Energy Partners LP (NYSE:MWE), Concho Resources Inc. (NYSE:CXO), and Diamond Offshore Drilling Inc (NYSE:DO). This group of stocks are in the oil & gas drilling & exploration industry and their market caps match NE's market cap.