Is Alpha Natural Resources, Inc. (NYSE:ANR) a buy?
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Just as useful, positive insider trading activity is another way to analyze the financial markets. Just as you'd expect, there are many motivations for an insider to drop shares of his or her company, but just one, very clear reason why they would buy. Several academic studies have demonstrated the market-beating potential of this tactic if piggybackers understand where to look (learn more here).
Thus, let's study the recent info surrounding Alpha Natural Resources, Inc. (NYSE:ANR).
In preparation for the third quarter, a total of 23 of the hedge funds we track were bullish in this stock, a change of 5% from the previous quarter. With hedge funds' capital changing hands, there exists an "upper tier" of key hedge fund managers who were increasing their stakes significantly.
According to our 13F database, Steelhead Partners, managed by Michael Johnston, holds the biggest position in Alpha Natural Resources, Inc. (NYSE:ANR). Steelhead Partners has a $49.8 million position in the stock, comprising 4.5% of its 13F portfolio. On Steelhead Partners's heels is Cliff Asness of AQR Capital Management, with a $23.9 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining peers that hold long positions include John Paulson's Paulson & Co, Jason Adler's AlphaBet Management and Kevin Michael Ulrich's Anchorage Advisors.
Now, particular hedge funds were breaking ground themselves. Steelhead Partners, managed by Michael Johnston, assembled the most valuable position in Alpha Natural Resources, Inc. (NYSE:ANR). Steelhead Partners had 49.8 million invested in the company at the end of the quarter. Cliff Asness's AQR Capital Management also made a $23.9 million investment in the stock during the quarter. The other funds with new positions in the stock are John Paulson's Paulson & Co, Jason Adler's AlphaBet Management, and Kevin Michael Ulrich's Anchorage Advisors.
Legal insider trading, particularly when it's bullish, is best served when the primary stock in question has experienced transactions within the past 180 days. Over the last half-year time period, Alpha Natural Resources, Inc. (NYSE:ANR) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We'll also take a look at the relationship between both of these indicators in other stocks similar to Alpha Natural Resources, Inc. (NYSE:ANR). These stocks are Alliance Resource Partners, L.P. (NASDAQ:ARLP), PVR Partners LP (NYSE:PVR), Stillwater Mining Company (NYSE:SWC), HudBay Minerals Inc Ord Shs (NYSE:HBM), and Walter Energy, Inc. (NYSE:WLT). All of these stocks are in the industrial metals & minerals industry and their market caps are similar to ANR's market cap.