Baytex Energy Corp (USA) (NYSE:BTE) investors should be aware of a decrease in support from the world’s most elite money managers recently.
In the 21st century investor’s toolkit, there are many indicators market participants can use to monitor their holdings. A couple of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best money managers can outpace the S&P 500 by a solid margin (see just how much).
Equally as key, positive insider trading activity is a second way to parse down the stock market universe. As the old adage goes: there are lots of reasons for an upper level exec to drop shares of his or her company, but only one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the useful potential of this method if you understand what to do (learn more here).
Now, we’re going to take a peek at the recent action surrounding Baytex Energy Corp (USA) (NYSE:BTE).
How are hedge funds trading Baytex Energy Corp (USA) (NYSE:BTE)?
At the end of the fourth quarter, a total of 9 of the hedge funds we track held long positions in this stock, a change of 0% from the third quarter. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were boosting their holdings considerably.
According to our comprehensive database, Renaissance Technologies, managed by Jim Simons, holds the largest position in Baytex Energy Corp (USA) (NYSE:BTE). Renaissance Technologies has a $5 million position in the stock, comprising 0% of its 13F portfolio. On Renaissance Technologies’s heels is D. E. Shaw of D E Shaw, with a $4 million position; the fund has 0% of its 13F portfolio invested in the stock. Other peers with similar optimism include Israel Englander’s Millennium Management, Daniel Bubis’s Tetrem Capital Management and Chuck Royce’s Royce & Associates.
Seeing as Baytex Energy Corp (USA) (NYSE:BTE) has experienced a declination in interest from hedge fund managers, logic holds that there were a few fund managers who sold off their entire stakes at the end of the year. It’s worth mentioning that David Costen Haley’s HBK Investments said goodbye to the biggest stake of the “upper crust” of funds we monitor, worth an estimated $0 million in stock.. Tom Russo’s fund, Gardner Russo & Gardner, also dropped its stock, about $0 million worth. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What do corporate executives and insiders think about Baytex Energy Corp (USA) (NYSE:BTE)?
Insider buying is at its handiest when the company we’re looking at has experienced transactions within the past 180 days. Over the last half-year time frame, Baytex Energy Corp (USA) (NYSE:BTE) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Baytex Energy Corp (USA) (NYSE:BTE). These stocks are SM Energy Co. (NYSE:SM), Cimarex Energy Co (NYSE:XEC), Plains Exploration & Production Company (NYSE:PXP), Kosmos Energy Ltd (NYSE:KOS), and National Fuel Gas Co. (NYSE:NFG). This group of stocks belong to the independent oil & gas industry and their market caps are similar to BTE’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|SM Energy Co. (NYSE:SM)||16||0||3|
|Cimarex Energy Co (NYSE:XEC)||17||0||9|
|Plains Exploration & Production Company (NYSE:PXP)||37||0||0|
|Kosmos Energy Ltd (NYSE:KOS)||7||1||10|
|National Fuel Gas Co. (NYSE:NFG)||13||0||2|
With the results demonstrated by the aforementioned tactics, everyday investors must always keep an eye on hedge fund and insider trading activity, and Baytex Energy Corp (USA) (NYSE:BTE) is no exception.