Northern Dynasty Minerals Ltd. (USA) (NYSEAMEX:NAK) has seen an increase in support from the world’s most elite money managers of late.
To the average investor, there are dozens of metrics investors can use to monitor publicly traded companies. A couple of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite fund managers can outperform the broader indices by a solid amount (see just how much).
Just as key, positive insider trading activity is another way to parse down the investments you’re interested in. Just as you’d expect, there are plenty of incentives for an executive to downsize shares of his or her company, but just one, very obvious reason why they would buy. Various empirical studies have demonstrated the valuable potential of this strategy if “monkeys” understand where to look (learn more here).
With these “truths” under our belt, it’s important to take a glance at the latest action encompassing Northern Dynasty Minerals Ltd. (USA) (NYSEAMEX:NAK).
How have hedgies been trading Northern Dynasty Minerals Ltd. (USA) (NYSEAMEX:NAK)?
In preparation for this year, a total of 6 of the hedge funds we track held long positions in this stock, a change of 20% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were boosting their holdings significantly.
As aggregate interest increased, specific money managers were leading the bulls’ herd. Millennium Management, managed by Israel Englander, initiated the biggest position in Northern Dynasty Minerals Ltd. (USA) (NYSEAMEX:NAK). Millennium Management had $0.1 million invested in the company at the end of the quarter.
How have insiders been trading Northern Dynasty Minerals Ltd. (USA) (NYSEAMEX:NAK)?
Insider trading activity, especially when it’s bullish, is best served when the company in focus has experienced transactions within the past half-year. Over the latest half-year time frame, Northern Dynasty Minerals Ltd. (USA) (NYSEAMEX:NAK) has experienced zero 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 Northern Dynasty Minerals Ltd. (USA) (NYSEAMEX:NAK). These stocks are PolyMet Mining Corp. (USA) (NYSEAMEX:PLM), SilverCrest Mines Inc (NYSEAMEX:SVLC), North American Palladium Ltd (USA) (NYSEAMEX:PAL), Paramount Gold and Silver Corp. (NYSEAMEX:PZG), and Pretium Resources Inc (NYSE:PVG). This group of stocks are in the industrial metals & minerals industry and their market caps match NAK’s market cap.