Dorman Products Inc. (NASDAQ:DORM) shareholders have witnessed a decrease in hedge fund sentiment in recent months.
To the average investor, there are dozens of indicators market participants can use to track the equity markets. A duo of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best investment managers can beat the broader indices by a solid margin (see just how much).
Just as key, optimistic insider trading sentiment is another way to break down the world of equities. Obviously, there are plenty of reasons for an insider to sell shares of his or her company, but just one, very clear reason why they would buy. Plenty of empirical studies have demonstrated the useful potential of this tactic if you know what to do (learn more here).
With all of this in mind, we’re going to take a glance at the recent action regarding Dorman Products Inc. (NASDAQ:DORM).
How are hedge funds trading Dorman Products Inc. (NASDAQ:DORM)?
Heading into Q2, a total of 4 of the hedge funds we track were long in this stock, a change of -43% from one quarter earlier.
Judging by the fact that Dorman Products Inc. (NASDAQ:DORM) has experienced falling interest from the smart money, it’s easy to see that there lies a certain “tier” of hedge funds that elected to cut their entire stakes at the end of the first quarter. Interestingly, Andy Redleaf’s Whitebox Advisors sold off the largest investment of the 450+ funds we monitor, totaling about $1.5 million in stock., and D. E. Shaw of D E Shaw was right behind this move, as the fund dumped about $1.4 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 3 funds at the end of the first quarter.
How have insiders been trading Dorman Products Inc. (NASDAQ:DORM)?
Bullish insider trading is particularly usable when the company in question has experienced transactions within the past six months. Over the last 180-day time period, Dorman Products Inc. (NASDAQ:DORM) has seen zero unique insiders purchasing, and 8 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Dorman Products Inc. (NASDAQ:DORM). These stocks are Dana Holding Corporation (NYSE:DAN), Tenneco Inc (NYSE:TEN), American Axle & Manufact. Holdings, Inc. (NYSE:AXL), Westport Innovations Inc. (USA) (NASDAQ:WPRT), and Monro Muffler Brake Inc (NASDAQ:MNRO). This group of stocks are the members of the auto parts industry and their market caps resemble DORM’s market cap.