To the average investor, there are plenty of gauges market participants can use to monitor the equity markets. A couple of the best are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top investment managers can outclass their index-focused peers by a very impressive margin (see just how much).
Equally as necessary, optimistic insider trading sentiment is another way to analyze the investments you’re interested in. Just as you’d expect, there are plenty of reasons for an executive to drop shares of his or her company, but only one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the valuable potential of this tactic if you understand where to look (learn more here).
What’s more, we’re going to analyze the recent info about Kohl’s Corporation (NYSE:KSS).
Hedge fund activity in Kohl’s Corporation (NYSE:KSS)
Heading into Q3, a total of 28 of the hedge funds we track held long positions in this stock, a change of 22% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes meaningfully.
Out of the hedge funds we follow, Natixis Global Asset Management’s Harris Associates had the biggest position in Kohl’s Corporation (NYSE:KSS), worth close to $111.5 million, accounting for 0.2% of its total 13F portfolio. The second largest stake is held by Richard S. Pzena of Pzena Investment Management, with a $41.1 million position; 0.3% of its 13F portfolio is allocated to the stock. Some other hedge funds that hold long positions include Ken Griffin’s Citadel Investment Group, Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital and Yale M. Fergang and Robert W. Medway’s Royal Capital.
Now, certain money managers were leading the bulls’ herd. Pzena Investment Management, managed by Richard S. Pzena, assembled the most valuable position in Kohl’s Corporation (NYSE:KSS). Pzena Investment Management had 41.1 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $34.3 million position during the quarter. The other funds with new positions in the stock are Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital, Yale M. Fergang and Robert W. Medway’s Royal Capital, and Dmitry Balyasny’s Balyasny Asset Management.
How have insiders been trading Kohl’s Corporation (NYSE:KSS)?
Legal insider trading, particularly when it’s bullish, is particularly usable when the company we’re looking at has seen transactions within the past 180 days. Over the latest six-month time period, Kohl’s Corporation (NYSE:KSS) has seen 2 unique insiders purchasing, and 5 insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Kohl’s Corporation (NYSE:KSS). These stocks are The TJX Companies, Inc. (NYSE:TJX), J.C. Penney Company, Inc. (NYSE:JCP), Dillard’s, Inc. (NYSE:DDS), Sears Holdings Corporation (NASDAQ:SHLD), and Macy’s, Inc. (NYSE:M). This group of stocks belong to the department stores industry and their market caps resemble KSS’s market cap.