Are you invested in T. Rowe Price Group, Inc. (NASDAQ:TROW)?
In the financial world, there are tons of methods market participants can use to track publicly traded companies. Two of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can trounce the S&P 500 by a solid amount (see just how much).
Equally as key, optimistic insider trading activity is another way to look at the world of equities. Just as you’d expect, there are a variety of reasons for an upper level exec to get rid of shares of his or her company, but just one, very simple reason why they would initiate a purchase. Various academic studies have demonstrated the valuable potential of this strategy if piggybackers know where to look (learn more here).
Keeping this in mind, we’re going to analyze the recent info surrounding T. Rowe Price Group, Inc. (NASDAQ:TROW).
How have hedgies been trading T. Rowe Price Group, Inc. (NASDAQ:TROW)?
At Q2’s end, a total of 29 of the hedge funds we track were long in this stock, a change of 21% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their holdings meaningfully.
When using filings from the hedgies we track, Citadel Investment Group, managed by Ken Griffin, holds the most valuable position in T. Rowe Price Group, Inc. (NASDAQ:TROW). Citadel Investment Group has a $40.9 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is Royce & Associates, managed by Chuck Royce, which held a $30.1 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include David Harding’s Winton Capital Management, John W. Rogers’s Ariel Investments and Jim Simons’s Renaissance Technologies.
Consequently, particular hedge funds were leading the bulls’ herd. Citadel Investment Group, managed by Ken Griffin, created the biggest position in T. Rowe Price Group, Inc. (NASDAQ:TROW). Citadel Investment Group had 40.9 million invested in the company at the end of the quarter. Chuck Royce’s Royce & Associates also made a $30.1 million investment in the stock during the quarter. The other funds with new positions in the stock are David Harding’s Winton Capital Management, John W. Rogers’s Ariel Investments, and Jim Simons’s Renaissance Technologies.
How have insiders been trading T. Rowe Price Group, Inc. (NASDAQ:TROW)?
Legal insider trading, particularly when it’s bullish, is most useful when the company we’re looking at has seen transactions within the past half-year. Over the latest 180-day time frame, T. Rowe Price Group, Inc. (NASDAQ:TROW) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to T. Rowe Price Group, Inc. (NASDAQ:TROW). These stocks are Invesco Ltd. (NYSE:IVZ), Northern Trust Corporation (NASDAQ:NTRS), State Street Corporation (NYSE:STT), Ameriprise Financial, Inc. (NYSE:AMP), and The Blackstone Group L.P. (NYSE:BX). All of these stocks are in the asset management industry and their market caps match TROW’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Invesco Ltd. (NYSE:IVZ) | 30 | 0 | 0 |
| Northern Trust Corporation (NASDAQ:NTRS) | 29 | 0 | 0 |
| State Street Corporation (NYSE:STT) | 32 | 0 | 0 |
| Ameriprise Financial, Inc. (NYSE:AMP) | 23 | 0 | 0 |
| The Blackstone Group L.P. (NYSE:BX) | 31 | 0 | 0 |
Using the returns explained by the previously mentioned studies, average investors must always watch hedge fund and insider trading sentiment, and T. Rowe Price Group, Inc. (NASDAQ:TROW) is an important part of this process.
