Is it smart to be bullish on PNM Resources, Inc. (NYSE:PNM)?
In today’s marketplace, there are plenty of gauges shareholders can use to monitor stocks. A pair 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 top investment managers can outclass the broader indices by a healthy amount (see just how much).
Just as useful, positive insider trading activity is a second way to analyze the world of equities. There are many stimuli for an executive to downsize shares of his or her company, but just one, very simple reason why they would behave bullishly. Several empirical studies have demonstrated the valuable potential of this tactic if you understand where to look (learn more here).
Furthermore, we’re going to study the latest info about PNM Resources, Inc. (NYSE:PNM).
How have hedgies been trading PNM Resources, Inc. (NYSE:PNM)?
At Q2’s end, a total of 17 of the hedge funds we track held long positions in this stock, a change of 13% from the previous quarter. With hedge funds’ sentiment swirling, there exists a few key hedge fund managers who were boosting their stakes meaningfully.
According to our 13F database, GAMCO Investors, managed by Mario Gabelli, holds the biggest position in PNM Resources, Inc. (NYSE:PNM). GAMCO Investors has a $67 million position in the stock, comprising 0.4% of its 13F portfolio. The second largest stake is held by Millennium Management, managed by Israel Englander, which held a $48.6 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedge funds that hold long positions include Millennium Management Subsidiary’s Decade Capital Management, Chuck Royce’s Royce & Associates and Jim Simons’s Renaissance Technologies.
With a general bullishness amongst the titans, certain bigger names have been driving this bullishness. GAMCO Investors, managed by Mario Gabelli, created the most valuable position in PNM Resources, Inc. (NYSE:PNM). GAMCO Investors had 67 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $48.6 million position during the quarter. The other funds with brand new PNM positions are Millennium Management Subsidiary’s Decade Capital Management, Chuck Royce’s Royce & Associates, and Jim Simons’s Renaissance Technologies.
What have insiders been doing with PNM Resources, Inc. (NYSE:PNM)?
Bullish insider trading is most useful when the company in question has seen transactions within the past 180 days. Over the last half-year time frame, PNM Resources, Inc. (NYSE:PNM) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to PNM Resources, Inc. (NYSE:PNM). These stocks are Vectren Corporation (NYSE:VVC), MGE Energy, Inc. (NASDAQ:MGEE), NorthWestern Corp (NYSE:NWE), Avista Corp (NYSE:AVA), and ALLETE Inc (NYSE:ALE). This group of stocks belong to the diversified utilities industry and their market caps are similar to PNM’s market cap.