Pinnacle Financial Partners (NASDAQ:PNFP) shareholders have witnessed a decrease in hedge fund interest lately.
To the average investor, there are dozens of gauges shareholders can use to track stocks. Some 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 market by a very impressive amount (see just how much).
Equally as important, positive insider trading activity is a second way to parse down the financial markets. There are a variety of motivations for a corporate insider to get rid of shares of his or her company, but only one, very clear reason why they would buy. Several academic studies have demonstrated the useful potential of this method if “monkeys” know where to look (learn more here).
Keeping this in mind, it’s important to take a glance at the latest action encompassing Pinnacle Financial Partners (NASDAQ:PNFP).
How are hedge funds trading Pinnacle Financial Partners (NASDAQ:PNFP)?
At Q1’s end, a total of 5 of the hedge funds we track were bullish in this stock, a change of -44% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their stakes considerably.
When looking at the hedgies we track, Jim Simons’s Renaissance Technologies had the largest position in Pinnacle Financial Partners (NASDAQ:PNFP), worth close to $8.6 million, comprising less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is AQR Capital Management, managed by Cliff Asness, which held a $5.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Ken Griffin’s Citadel Investment Group, Israel Englander’s Millennium Management and Mike Vranos’s Ellington.
Because Pinnacle Financial Partners (NASDAQ:PNFP) has experienced bearish sentiment from the smart money, it’s safe to say that there was a specific group of money managers that slashed their entire stakes heading into Q2. Interestingly, D. E. Shaw’s D E Shaw said goodbye to the biggest stake of all the hedgies we key on, totaling close to $0.4 million in stock., and John Overdeck and David Siegel of Two Sigma Advisors was right behind this move, as the fund cut about $0.3 million worth. These moves are intriguing to say the least, as total hedge fund interest was cut by 4 funds heading into Q2.
How are insiders trading Pinnacle Financial Partners (NASDAQ:PNFP)?
Insider trading activity, especially when it’s bullish, is most useful when the company in question has seen transactions within the past half-year. Over the last half-year time frame, Pinnacle Financial Partners (NASDAQ:PNFP) has seen zero unique insiders buying, and 3 insider sales (see the details of insider trades here).
With the returns demonstrated by Insider Monkey’s research, everyday investors must always watch hedge fund and insider trading activity, and Pinnacle Financial Partners (NASDAQ:PNFP) is no exception.