Matrix Service Co (NASDAQ:MTRX) has experienced an increase in hedge fund sentiment recently.
To the average investor, there are a multitude of indicators investors can use to watch Mr. Market. A duo of the most useful are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite fund managers can outpace the S&P 500 by a healthy amount (see just how much).
Just as important, optimistic insider trading sentiment is another way to parse down the world of equities. Obviously, there are plenty of incentives for a corporate insider to cut shares of his or her company, but only one, very obvious reason why they would behave bullishly. Various academic studies have demonstrated the impressive potential of this method if shareholders know where to look (learn more here).
Now, we're going to take a look at the key action encompassing Matrix Service Co (NASDAQ:MTRX).
In preparation for this quarter, a total of 11 of the hedge funds we track were bullish in this stock, a change of 22% from the first quarter. With hedge funds' sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their holdings substantially.
Of the funds we track, Royce & Associates, managed by Chuck Royce, holds the most valuable position in Matrix Service Co (NASDAQ:MTRX). Royce & Associates has a $46.2 million position in the stock, comprising 0.1% of its 13F portfolio. On Royce & Associates's heels is Millennium Management, managed by Israel Englander, which held a $2.8 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other peers that are bullish include John Overdeck and David Siegel's Two Sigma Advisors, Ken Griffin's Citadel Investment Group and Peter Algert and Kevin Coldiron's Algert Coldiron Investors.
Now, specific money managers were leading the bulls' herd. Ellington, managed by Mike Vranos, initiated the largest position in Matrix Service Co (NASDAQ:MTRX). Ellington had 0.2 million invested in the company at the end of the quarter. Matthew Tewksbury's Stevens Capital Management also initiated a $0.2 million position during the quarter.
Insider purchases made by high-level executives is at its handiest when the primary stock in question has experienced transactions within the past 180 days. Over the last six-month time frame, Matrix Service Co (NASDAQ:MTRX) has seen zero unique insiders buying, 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 in the heavy construction industry and their market caps resemble MTRX's market cap.