Is The Allstate Corporation (NYSE:ALL) a buy?
To the average investor, there are plenty of gauges shareholders can use to watch the equity markets. A couple of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top investment managers can trounce the broader indices by a superb margin (see just how much).
Equally as necessary, positive insider trading sentiment is a second way to analyze the investments you're interested in. As the old adage goes: there are a number of reasons for an upper level exec to cut shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the market-beating potential of this strategy if you know what to do (learn more here).
Now that that's out of the way, we're going to examine the newest info surrounding The Allstate Corporation (NYSE:ALL).
Heading into Q3, a total of 35 of the hedge funds we track held long positions in this stock, a change of 9% from the previous quarter. With hedge funds' positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their holdings substantially.
When using filings from the hedgies we track, Viking Global, managed by Andreas Halvorsen, holds the most valuable position in The Allstate Corporation (NYSE:ALL). Viking Global has a $350.5 million position in the stock, comprising 1.9% of its 13F portfolio. Coming in second is Citadel Investment Group, managed by Ken Griffin, which held a $203.9 million position; 0.4% of its 13F portfolio is allocated to the company. Some other peers that are bullish include Rob Citrone's Discovery Capital Management, Richard S. Pzena's Pzena Investment Management and Phill Gross and Robert Atchinson's Adage Capital Management.
As one would understandably expect, particular hedge funds have jumped into The Allstate Corporation (NYSE:ALL) headfirst. Viking Global, managed by Andreas Halvorsen, initiated the most valuable position in The Allstate Corporation (NYSE:ALL). Viking Global had 350.5 million invested in the company at the end of the quarter. Ken Griffin's Citadel Investment Group also made a $203.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Rob Citrone's Discovery Capital Management, Richard S. Pzena's Pzena Investment Management, and Phill Gross and Robert Atchinson's Adage Capital Management.
Bullish insider trading is best served when the company we're looking at has experienced transactions within the past 180 days. Over the latest half-year time frame, The Allstate Corporation (NYSE:ALL) has seen zero unique insiders purchasing, and 12 insider sales (see the details of insider trades here).
We'll also take a look at the relationship between both of these indicators in other stocks similar to The Allstate Corporation (NYSE:ALL). These stocks are The Progressive Corporation (NYSE:PGR), Travelers Companies Inc (NYSE:TRV), Loews Corporation (NYSE:L), ACE Limited (NYSE:ACE), and The Chubb Corporation (NYSE:CB). This group of stocks are in the property & casualty insurance industry and their market caps are similar to ALL's market cap.