Kraft Foods Group Inc (NASDAQ:KRFT). Is it a buy?
In today’s marketplace, there are plenty of indicators market participants can use to monitor the equity markets. A duo of the most useful are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best fund managers can outpace their index-focused peers by a superb amount (see just how much).
Just as crucial, bullish insider trading sentiment is a second way to analyze the stock market universe. As the old adage goes: there are a number of stimuli for a corporate insider to get rid of shares of his or her company, but just one, very obvious reason why they would behave bullishly. Several academic studies have demonstrated the impressive potential of this tactic if piggybackers understand where to look (learn more here).
What's more, it's important to analyze the newest info surrounding Kraft Foods Group Inc (NASDAQ:KRFT).
In preparation for the third quarter, a total of 30 of the hedge funds we track held long positions in this stock, a change of 3% from one quarter earlier. With hedge funds' positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their stakes meaningfully.
Out of the hedge funds we follow, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the most valuable position in Kraft Foods Group Inc (NASDAQ:KRFT). Adage Capital Management has a $81.7 million position in the stock, comprising 0.3% of its 13F portfolio. On Adage Capital Management's heels is D E Shaw, managed by D. E. Shaw, which held a $52 million position; 0.1% of its 13F portfolio is allocated to the company. Some other peers that hold long positions include Ken Griffin's Citadel Investment Group, Clint Carlson's Carlson Capital and George Soros's Soros Fund Management.
As one would understandably expect, certain money managers were breaking ground themselves. Adage Capital Management, managed by Phill Gross and Robert Atchinson, created the most outsized position in Kraft Foods Group Inc (NASDAQ:KRFT). Adage Capital Management had 81.7 million invested in the company at the end of the quarter. D. E. Shaw's D E Shaw also made a $52 million investment in the stock during the quarter. The other funds with brand new KRFT positions are Ken Griffin's Citadel Investment Group, Clint Carlson's Carlson Capital, and George Soros's Soros Fund Management.
Insider buying is at its handiest when the primary stock in question has experienced transactions within the past 180 days. Over the latest 180-day time period, Kraft Foods Group Inc (NASDAQ:KRFT) has experienced zero unique insiders buying, and zero 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 Kraft Foods Group Inc (NASDAQ:KRFT). These stocks are Post Holdings Inc (NYSE:POST), Lancaster Colony Corp. (NASDAQ:LANC), The WhiteWave Foods Co (NYSE:WWAV), Unilever plc (ADR) (NYSE:UL), and H.J. Heinz Company (NYSE:HNZ). All of these stocks are in the food - major diversified industry and their market caps are closest to KRFT's market cap.