Pembina Pipeline Corp (PBA): Insiders Are Dumping, Should You?: Oneok Partners LP (OKS), Magellan Midstream Partners, L.P. (MMP)

Pembina Pipeline Corp (NYSE:PBA) investors should be aware of an increase in hedge fund interest in recent months.

Pembina Pipeline Corp (NYSE:PBA)To the average investor, there are a multitude of metrics market participants can use to watch Mr. Market. Two of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best investment managers can outclass the S&P 500 by a very impressive margin (see just how much).

Equally as key, bullish insider trading activity is another way to parse down the marketplace. There are a variety of motivations for a corporate insider to cut shares of his or her company, but only one, very simple reason why they would initiate a purchase. Plenty of academic studies have demonstrated the impressive potential of this method if you understand what to do (learn more here).

Consequently, let’s take a look at the recent action surrounding Pembina Pipeline Corp (NYSE:PBA).

How are hedge funds trading Pembina Pipeline Corp (NYSE:PBA)?

At year’s end, a total of 5 of the hedge funds we track were long in this stock, a change of 67% from the third quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their stakes considerably.

Of the funds we track, Jim Simons’s Renaissance Technologies had the biggest position in Pembina Pipeline Corp (NYSE:PBA), worth close to $2 million, accounting for 0% of its total 13F portfolio. Coming in second is Russell Lucas of Lucas Capital Management, with a $1 million position; 0% of its 13F portfolio is allocated to the stock. Remaining hedgies that are bullish include Steven Cohen’s SAC Capital Advisors, Ken Griffin’s Citadel Investment Group and Israel Englander’s Millennium Management.

As industrywide interest jumped, some big names have jumped into Pembina Pipeline Corp (NYSE:PBA) headfirst. Renaissance Technologies, managed by Jim Simons, assembled the most valuable position in Pembina Pipeline Corp (NYSE:PBA). Renaissance Technologies had 2 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also initiated a $0 million position during the quarter. The only other fund with a new position in the stock is Ken Griffin’s Citadel Investment Group.

What do corporate executives and insiders think about Pembina Pipeline Corp (NYSE:PBA)?

Bullish insider trading is best served when the primary stock in question has seen transactions within the past half-year. Over the last half-year time period, Pembina Pipeline Corp (NYSE:PBA) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Pembina Pipeline Corp (NYSE:PBA). These stocks are Oneok Partners LP (NYSE:OKS), Magellan Midstream Partners, L.P. (NYSE:MMP), Kinder Morgan Management, LLC (NYSE:KMR), El Paso Pipeline Partners, L.P. (NYSE:EPB), and Enbridge Energy Partners, L.P. (NYSE:EEP). This group of stocks are in the oil & gas pipelines industry and their market caps are closest to PBA’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Oneok Partners LP (NYSE:OKS) 5 1 0
Magellan Midstream Partners, L.P. (NYSE:MMP) 9 0 1
Kinder Morgan Management, LLC (NYSE:KMR) 7 2 0
El Paso Pipeline Partners, L.P. (NYSE:EPB) 7 0 0
Enbridge Energy Partners, L.P. (NYSE:EEP) 5 3 0

With the returns shown by our research, everyday investors should always monitor hedge fund and insider trading sentiment, and Pembina Pipeline Corp (NYSE:PBA) is no exception.

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Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% for the S&P 500 index. Try it now by clicking the link above.

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