Is Denison Mines Corp (USA) (NYSEAMEX:DNN) a healthy stock for your portfolio? Prominent investors are reducing their bets on the stock. The number of long hedge fund positions stayed the same which is a slightly negative development in our experience
To the average investor, there are plenty of metrics market participants can use to monitor their holdings. Some 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 superb amount (see just how much).
Just as beneficial, bullish insider trading sentiment is another way to parse down the world of equities. Obviously, there are plenty of stimuli for an upper level exec to downsize shares of his or her company, but only one, very clear reason why they would behave bullishly. Various academic studies have demonstrated the market-beating potential of this method if you understand what to do (learn more here).
With these “truths” under our belt, it’s important to take a look at the key action surrounding Denison Mines Corp (USA) (NYSEAMEX:DNN).
What have hedge funds been doing with Denison Mines Corp (USA) (NYSEAMEX:DNN)?
At Q1’s end, a total of 7 of the hedge funds we track were bullish in this stock, a change of 0% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their holdings considerably.
Of the funds we track, CQS Cayman LP, managed by Michael Hintze, holds the largest position in Denison Mines Corp (USA) (NYSEAMEX:DNN). CQS Cayman LP has a $2.7 million position in the stock, comprising 0.3% of its 13F portfolio. On CQS Cayman LP’s heels is Renaissance Technologies, managed by Jim Simons, which held a $0.2 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other hedgies that hold long positions include Eric Sprott’s Sprott Asset Management, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors and Ken Griffin’s Citadel Investment Group.
Because Denison Mines Corp (USA) (NYSEAMEX:DNN) has faced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there were a few money managers that slashed their entire stakes at the end of the first quarter. Interestingly, D. E. Shaw’s D E Shaw said goodbye to the largest investment of all the hedgies we watch, valued at about $0.9 million in stock.. Andrew Weiss’s fund, Weiss Asset Management, also dropped its stock, about $0.5 million worth. These transactions are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What do corporate executives and insiders think about Denison Mines Corp (USA) (NYSEAMEX:DNN)?
Bullish insider trading is particularly usable when the primary stock in question has experienced transactions within the past six months. Over the latest half-year time period, Denison Mines Corp (USA) (NYSEAMEX:DNN) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Denison Mines Corp (USA) (NYSEAMEX:DNN). These stocks are Thompson Creek Metals Company Inc (USA) (NYSE:TC), Materion Corp (NYSE:MTRN), Platinum Group Metals Limited (USA) (NYSEAMEX:PLG), MFC Industrial Ltd (NYSE:MIL), and Taseko Mines Limited (USA) (NYSEAMEX:TGB). This group of stocks are the members of the industrial metals & minerals industry and their market caps are closest to DNN’s market cap.