Is it smart to be bullish on Cabelas Inc (NYSE:CAB)?
In the financial world, there are many gauges investors can use to monitor stocks. Some of the best are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best hedge fund managers can beat the broader indices by a very impressive margin (see just how much).
Equally as necessary, positive insider trading sentiment is a second way to analyze the world of equities. There are a number of stimuli for an executive to cut shares of his or her company, but just one, very clear reason why they would buy. Several empirical studies have demonstrated the valuable potential of this strategy if "monkeys" know what to do (learn more here).
Keeping this in mind, we're going to examine the newest info for Cabelas Inc (NYSE:CAB).
In preparation for the third quarter, a total of 25 of the hedge funds we track were long in this stock, a change of 47% from the previous quarter. With the smart money's capital changing hands, there exists a select group of notable hedge fund managers who were upping their holdings meaningfully.
According to our 13F database, Ken Fisher's Fisher Asset Management had the biggest position in Cabelas Inc (NYSE:CAB), worth close to $129.8 million, comprising 0.3% of its total 13F portfolio. The second largest stake is held by Alkeon Capital Management, managed by Panayotis Sparaggis, which held a $85 million position; 1.9% of its 13F portfolio is allocated to the company. Some other hedge funds that hold long positions include Robert Joseph Caruso's Select Equity Group, John Overdeck and David Siegel's Two Sigma Advisors and Donald Chiboucis's Columbus Circle Investors.
Now, particular hedge funds were leading the bulls' herd. Fisher Asset Management, managed by Ken Fisher, created the biggest position in Cabelas Inc (NYSE:CAB). Fisher Asset Management had 129.8 million invested in the company at the end of the quarter. Panayotis æTakisÆ Sparaggis's Alkeon Capital Management also made a $85 million investment in the stock during the quarter. The other funds with brand new CAB positions are Robert Joseph Caruso's Select Equity Group, John Overdeck and David Siegel's Two Sigma Advisors, and Donald Chiboucis's Columbus Circle Investors.
Bullish insider trading is best served when the company in question has seen transactions within the past six months. Over the last 180-day time frame, Cabelas Inc (NYSE:CAB) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Using the returns demonstrated by the previously mentioned research, average investors should always keep one eye on hedge fund and insider trading sentiment, and Cabelas Inc (NYSE:CAB) is no exception.