Packaging Corp Of America (NYSE:PKG): Hedge Funds and Insiders Are Bearish, What Should You Do?

Packaging Corp Of America (NYSE:PKG) was in 20 hedge funds’ portfolio at the end of the fourth quarter of 2012. pkg has experienced a decrease in hedge fund sentiment recently. There were 20 hedge funds in our database with pkg holdings at the end of the previous quarter.

At the moment, there are a multitude of methods shareholders can use to monitor stocks. A pair of the most innovative 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 elite investment managers can outpace the S&P 500 by a healthy amount (see just how much).

Packaging Corp Of America (NYSE:PKG)Just as key, positive insider trading sentiment is another way to break down the marketplace. There are plenty of incentives for a corporate insider to sell shares of his or her company, but just one, very simple reason why they would initiate a purchase. Plenty of academic studies have demonstrated the market-beating potential of this strategy if piggybackers understand where to look (learn more here).

With all of this in mind, let’s take a gander at the recent action surrounding Packaging Corp Of America (NYSE:PKG).

Hedge fund activity in Packaging Corp Of America (NYSE:PKG)

Heading into 2013, a total of 20 of the hedge funds we track were bullish in this stock, a change of 0% from the third quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their holdings significantly.

Of the funds we track, First Eagle Investment Management, managed by Jean-Marie Eveillard, holds the biggest position in Packaging Corp Of America (NYSE:PKG). First Eagle Investment Management has a $165 million position in the stock, comprising 0.6% of its 13F portfolio. On First Eagle Investment Management’s heels is Iridian Asset Management, managed by David Cohen and Harold Levy, which held a $129 million position; the fund has 2.1% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include Jeffrey Vinik’s Vinik Asset Management, SAC Subsidiary’s CR Intrinsic Investors and Joshua Friedman and Mitchell Julis’s Canyon Capital Advisors.

Since Packaging Corp Of America (NYSE:PKG) has experienced falling interest from the aggregate hedge fund industry, it’s easy to see that there is a sect of funds who were dropping their entire stakes in Q4. At the top of the heap, Richard Schimel’s Diamondback Capital sold off the biggest position of all the hedgies we watch, valued at an estimated $4 million in stock., and Meryl Witmer of Eagle Value Partners was right behind this move, as the fund dropped about $4 million worth. These transactions are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

What have insiders been doing with Packaging Corp Of America (NYSE:PKG)?

Insider buying is particularly usable when the company in focus has seen transactions within the past 180 days. Over the last half-year time period, Packaging Corp Of America (NYSE:PKG) has seen zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).

With the returns exhibited by our research, retail investors must always watch hedge fund and insider trading activity, and Packaging Corp Of America (NYSE:PKG) shareholders fit into this picture quite nicely.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!