Primoris Services Corp (NASDAQ:PRIM) shareholders have witnessed an increase in enthusiasm from smart money in recent months.
In the financial world, there are many methods investors can use to watch the equity markets. Two of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best hedge fund managers can outperform the broader indices by a healthy margin (see just how much).
Just as integral, optimistic insider trading sentiment is a second way to parse down the stock market universe. There are plenty of reasons for a corporate insider to sell shares of his or her company, but only one, very clear reason why they would behave bullishly. Many empirical studies have demonstrated the impressive potential of this tactic if piggybackers know what to do (learn more here).
Consequently, let’s take a glance at the key action encompassing Primoris Services Corp (NASDAQ:PRIM).
What have hedge funds been doing with Primoris Services Corp (NASDAQ:PRIM)?
At the end of the first quarter, a total of 18 of the hedge funds we track were bullish in this stock, a change of 20% from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of notable hedge fund managers who were upping their stakes significantly.
Of the funds we track, Richard S. Meisenberg’s ACK Asset Management had the most valuable position in Primoris Services Corp (NASDAQ:PRIM), worth close to $9.9 million, comprising 4.3% of its total 13F portfolio. Sitting at the No. 2 spot is Ardsley Partners, managed by Philip Hempleman, which held a $7.7 million position; 1.1% of its 13F portfolio is allocated to the company. Some other hedge funds that are bullish include Richard Driehaus’s Driehaus Capital, Andrew R. Midler’s Savitr Capital and John Overdeck and David Siegel’s Two Sigma Advisors.
As aggregate interest increased, key money managers were leading the bulls’ herd. Hutchin Hill Capital, managed by Neil Chriss, assembled the largest position in Primoris Services Corp (NASDAQ:PRIM). Hutchin Hill Capital had 2 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $1.4 million position during the quarter. The other funds with brand new PRIM positions are D. E. Shaw’s D E Shaw, Robert Polak’s Anchor Bolt Capital, and Mike Vranos’s Ellington.
What do corporate executives and insiders think about Primoris Services Corp (NASDAQ:PRIM)?
Insider trading activity, especially when it’s bullish, is particularly usable when the primary stock in question has experienced transactions within the past six months. Over the last six-month time period, Primoris Services Corp (NASDAQ:PRIM) has seen 4 unique insiders buying, and 6 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Primoris Services Corp (NASDAQ:PRIM). These stocks are Empresas ICA SA (ADR) (NYSE:ICA), Dycom Industries, Inc. (NYSE:DY), Aegion Corp – Class A (NASDAQ:AEGN), Tutor Perini Corp (NYSE:TPC), and Granite Construction Inc. (NYSE:GVA). This group of stocks are in the heavy construction industry and their market caps are similar to PRIM’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Empresas ICA SA (ADR) (NYSE:ICA) | 6 | 0 | 0 |
| Dycom Industries, Inc. (NYSE:DY) | 12 | 0 | 2 |
| Aegion Corp – Class A (NASDAQ:AEGN) | 11 | 0 | 3 |
| Tutor Perini Corp (NYSE:TPC) | 6 | 0 | 2 |
| Granite Construction Inc. (NYSE:GVA) | 18 | 0 | 7 |
With the results demonstrated by the aforementioned studies, everyday investors must always monitor hedge fund and insider trading sentiment, and Primoris Services Corp (NASDAQ:PRIM) applies perfectly to this mantra.
