What’s a smart Stag Industrial Inc (NYSE:STAG) investor to do?
In the financial world, there are tons of indicators investors can use to track stocks. Two of the most useful 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 fund managers can beat the market by a solid amount (see just how much).
Just as necessary, optimistic insider trading sentiment is a second way to analyze the marketplace. There are a number of motivations for an upper level exec to get rid of shares of his or her company, but just one, very obvious reason why they would buy. Various empirical studies have demonstrated the market-beating potential of this strategy if “monkeys” know where to look (learn more here).
Furthermore, it’s important to analyze the latest info about Stag Industrial Inc (NYSE:STAG).
What have hedge funds been doing with Stag Industrial Inc (NYSE:STAG)?
At Q2’s end, a total of 9 of the hedge funds we track were bullish in this stock, a change of -18% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were boosting their holdings considerably.
When using filings from the hedgies we track, J. Alan Reid, Jr.’s Forward Management had the biggest position in Stag Industrial Inc (NYSE:STAG), worth close to $44 million, accounting for 3.7% of its total 13F portfolio. The second largest stake is held by Renaissance Technologies, managed by Jim Simons, which held a $9.5 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include Cliff Asness’s AQR Capital Management, Dmitry Balyasny’s Balyasny Asset Management and Richard Driehaus’s Driehaus Capital.
Because Stag Industrial Inc (NYSE:STAG) has faced declining interest from the entirety of the hedge funds we track, logic holds that there were a few funds who sold off their entire stakes at the end of the second quarter. It’s worth mentioning that Brian Taylor’s Pine River Capital Management said goodbye to the biggest stake of the 450+ funds we watch, totaling an estimated $9.1 million in stock. Gregory Fraser, Rudolph Kluiber, and Timothy Kroch’s fund, GRT Capital Partners, also sold off its stock, about $0.3 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 2 funds at the end of the second quarter.
What have insiders been doing with Stag Industrial Inc (NYSE:STAG)?
Legal insider trading, particularly when it’s bullish, is best served when the company in focus has experienced transactions within the past half-year. Over the last half-year time frame, Stag Industrial Inc (NYSE:STAG) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Stag Industrial Inc (NYSE:STAG). These stocks are Sovran Self Storage Inc (NYSE:SSS), Potlatch Corporation (NASDAQ:PCH), First Industrial Realty Trust, Inc. (NYSE:FR), Eastgroup Properties Inc (NYSE:EGP), and Monmouth R.E. Inv. Corp. (NYSE:MNR). All of these stocks are in the reit – industrial industry and their market caps are closest to STAG’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Sovran Self Storage Inc (NYSE:SSS) | 12 | 0 | 0 |
| Potlatch Corporation (NASDAQ:PCH) | 17 | 0 | 0 |
| First Industrial Realty Trust, Inc. (NYSE:FR) | 13 | 0 | 0 |
| Eastgroup Properties Inc (NYSE:EGP) | 6 | 0 | 0 |
| Monmouth R.E. Inv. Corp. (NYSE:MNR) | 7 | 0 | 0 |
Using the results shown by the previously mentioned analyses, regular investors should always keep one eye on hedge fund and insider trading sentiment, and Stag Industrial Inc (NYSE:STAG) shareholders fit into this picture quite nicely.
Discover how hedge fund piggybacking can benefit you
Recommended Reading:
Prologis Inc (PLD) – Stag Industrial Inc (STAG): One Company Leaping the Competition
Stag Industrial Inc (STAG), Whitestone REIT (WSR): REITs as an Inflation hedge: Three to Watch
