Is NextEra Energy, Inc. (NYSE:NEE) a good investment?
In the 21st century investor’s toolkit, there are dozens of gauges shareholders can use to monitor publicly traded companies. A couple of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top hedge fund managers can beat the S&P 500 by a superb amount (see just how much).
Equally as crucial, positive insider trading sentiment is a second way to analyze the world of equities. Obviously, there are many stimuli for an insider to downsize shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Several empirical studies have demonstrated the valuable potential of this method if investors understand what to do (learn more here).
Keeping this in mind, it’s important to discuss the newest info for NextEra Energy, Inc. (NYSE:NEE).
What have hedge funds been doing with NextEra Energy, Inc. (NYSE:NEE)?
In preparation for the third quarter, a total of 21 of the hedge funds we track held long positions in this stock, a change of 17% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their stakes considerably.
When using filings from the hedgies we track, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the largest position in NextEra Energy, Inc. (NYSE:NEE). Adage Capital Management has a $158.3 million position in the stock, comprising 0.5% of its 13F portfolio. Coming in second is Israel Englander of Millennium Management, with a $143.7 million position; 0.4% of its 13F portfolio is allocated to the stock. Remaining peers that are bullish include Millennium Management Subsidiary’s Decade Capital Management, Clint Carlson’s Carlson Capital and Bernard Horn’s Polaris Capital Management.
Consequently, certain bigger names were leading the bulls’ herd. Adage Capital Management, managed by Phill Gross and Robert Atchinson, initiated the most outsized position in NextEra Energy, Inc. (NYSE:NEE). Adage Capital Management had 158.3 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $143.7 million position during the quarter. The other funds with brand new NEE positions are Millennium Management Subsidiary’s Decade Capital Management, Clint Carlson’s Carlson Capital, and Bernard Horn’s Polaris Capital Management.
What do corporate executives and insiders think about NextEra Energy, Inc. (NYSE:NEE)?
Legal insider trading, particularly when it’s bullish, is most useful when the company in question has seen transactions within the past 180 days. Over the last six-month time period, NextEra Energy, Inc. (NYSE:NEE) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to NextEra Energy, Inc. (NYSE:NEE). These stocks are PG&E Corporation (NYSE:PCG), Duke Energy Corp (NYSE:DUK), American Electric Power Company, Inc. (NYSE:AEP), The Southern Company (NYSE:SO), and Dominion Resources, Inc. (NYSE:D). This group of stocks are the members of the electric utilities industry and their market caps match NEE’s market cap.