Matrix Service Co (NASDAQ:MTRX) has experienced a decrease in hedge fund sentiment lately.
In the 21st century investor’s toolkit, there are plenty of metrics market participants can use to analyze their holdings. A duo of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top hedge fund managers can outperform the S&P 500 by a healthy amount (see just how much).
Just as key, positive insider trading sentiment is a second way to parse down the marketplace. Just as you’d expect, there are plenty of stimuli for a corporate insider to sell shares of his or her company, but just one, very clear reason why they would buy. Various empirical studies have demonstrated the impressive potential of this strategy if investors understand where to look (learn more here).
Keeping this in mind, let’s take a look at the recent action regarding Matrix Service Co (NASDAQ:MTRX).
What does the smart money think about Matrix Service Co (NASDAQ:MTRX)?
At the end of the fourth quarter, a total of 9 of the hedge funds we track were bullish in this stock, a change of -10% from the previous quarter. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were boosting their holdings considerably.
According to our comprehensive database, Royce & Associates, managed by Chuck Royce, holds the most valuable position in Matrix Service Co (NASDAQ:MTRX). Royce & Associates has a $36.5 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is Cliff Asness of AQR Capital Management, with a $1.3 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include Israel Englander’s Millennium Management, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors and John Overdeck and David Siegel’s Two Sigma Advisors.
Because Matrix Service Co (NASDAQ:MTRX) has experienced falling interest from the entirety of the hedge funds we track, it’s easy to see that there is a sect of hedgies who sold off their positions entirely in Q4. Intriguingly, Robert B. Gillam’s McKinley Capital Management cut the biggest position of the 450+ funds we watch, totaling an estimated $1.8 million in stock., and Mike Vranos of Ellington was right behind this move, as the fund cut about $0.1 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 1 funds in Q4.
What do corporate executives and insiders think about Matrix Service Co (NASDAQ:MTRX)?
Insider purchases made by high-level executives is best served when the primary stock in question has experienced transactions within the past half-year. Over the latest half-year time frame, Matrix Service Co (NASDAQ:MTRX) has experienced zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Matrix Service Co (NASDAQ:MTRX). These stocks are Argan, Inc. (NYSEAMEX:AGX), Dycom Industries, Inc. (NYSE:DY), Orion Marine Group, Inc. (NYSE:ORN), Layne Christensen Company (NASDAQ:LAYN), and Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD). This group of stocks are the members of the heavy construction industry and their market caps match MTRX’s market cap.