Miller Energy Resources Inc (NYSE:MILL) investors should pay attention to a decrease in enthusiasm from smart money recently.
In today’s marketplace, there are many indicators investors can use to monitor publicly traded companies. A pair of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top hedge fund managers can outperform the broader indices by a significant margin (see just how much).
Credit: Miller Energy Resources Inc (NYSE:MILL)
Just as beneficial, bullish insider trading activity is a second way to break down the world of equities. As the old adage goes: there are a variety of incentives for a bullish 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 tactic if investors understand where to look (learn more here).
Now, it’s important to take a glance at the key action encompassing Miller Energy Resources Inc (NYSE:MILL).
Hedge fund activity in Miller Energy Resources Inc (NYSE:MILL)
At year’s end, a total of 4 of the hedge funds we track were bullish in this stock, a change of 0% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were boosting their stakes significantly.
Seeing as Miller Energy Resources Inc (NYSE:MILL) has faced bearish sentiment from hedge fund managers, it’s safe to say that there lies a certain “tier” of money managers that elected to cut their full holdings heading into 2013. At the top of the heap, Jim Simons’s Renaissance Technologies sold off the largest stake of all the hedgies we track, worth about $0.3 million in stock.. Ken Griffin’s fund, Citadel Investment Group, also said goodbye to its call options., about $0 million worth. These transactions are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What have insiders been doing with Miller Energy Resources Inc (NYSE:MILL)?
Insider trading activity, especially when it’s bullish, is best served when the company in focus has seen transactions within the past 180 days. Over the last half-year time frame, Miller Energy Resources Inc (NYSE:MILL) has experienced 1 unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Miller Energy Resources Inc (NYSE:MILL). These stocks are Genie Energy Ltd (NYSE:GNE), Equal Energy Ltd. (USA) (NYSE:EQU), Harvest Natural Resources, Inc. (NYSE:HNR), Endeavour International Corporation (NYSE:END), and Callon Petroleum Company (NYSE:CPE). All of these stocks are in the independent oil & gas industry and their market caps are similar to MILL’s market cap.