Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Chesapeake Energy Corporation (CHK): Should You Avoid Entergy Corporation (ETR)?

Entergy Corporation (NYSE:ETR) was in 13 hedge funds’ portfolio at the end of December. ETR has experienced a decrease in activity from the world’s largest hedge funds in recent months. There were 15 hedge funds in our database with ETR holdings at the end of the previous quarter. We’ll also look at some of its key peers, like Chesapeake Energy Corporation (NYSE:CHK) and DTE Energy Co (NYSE:DTE).

In the 21st century investor’s toolkit, there are a multitude of metrics shareholders can use to analyze the equity markets. A couple of the best 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 beat the broader indices by a superb amount (see just how much).

Entergy Corporation

Equally as integral, bullish insider trading activity is a second way to break down the stock market universe. As the old adage goes: there are plenty of reasons for an executive 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 valuable potential of this method if piggybackers know what to do (learn more here).

With these “truths” under our belt, it’s important to take a look at the key action surrounding Entergy Corporation (NYSE:ETR).

What does the smart money think about Entergy Corporation (NYSE:ETR)?

At year’s end, a total of 13 of the hedge funds we track held long positions in this stock, a change of -13% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their stakes substantially.

When looking at the hedgies we track, First Eagle Investment Management, managed by Jean-Marie Eveillard, holds the largest position in Entergy Corporation (NYSE:ETR). First Eagle Investment Management has a $229 million position in the stock, comprising 0.8% of its 13F portfolio. On First Eagle Investment Management’s heels is Richard S. Pzena of Pzena Investment Management, with a $220 million position; the fund has 1.8% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Cliff Asness’s AQR Capital Management, Ken Griffin’s Citadel Investment Group and Phill Gross and Robert Atchinson’s Adage Capital Management.

Seeing as Entergy Corporation (NYSE:ETR) has faced a declination in interest from the smart money, it’s easy to see that there were a few money managers that elected to cut their full holdings at the end of the year. Intriguingly, Michael Messner’s Seminole Capital (Investment Mgmt) said goodbye to the biggest stake of the 450+ funds we key on, worth close to $40 million in stock.. Charles Clough’s fund, Clough Capital Partners, also sold off its stock, about $11 million worth. These bearish behaviors are interesting, as total hedge fund interest fell by 2 funds at the end of the year.

What have insiders been doing with Entergy Corporation (NYSE:ETR)?

Insider trading activity, especially when it’s bullish, is most useful when the primary stock in question has seen transactions within the past half-year. Over the latest 180-day time period, Entergy Corporation (NYSE:ETR) has experienced zero unique insiders buying, and 1 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 Entergy Corporation (NYSE:ETR). These stocks are The AES Corporation (NYSE:AES), Calpine Corporation (NYSE:CPN), Wisconsin Energy Corporation (NYSE:WEC), Chesapeake Energy Corporation (NYSE:CHK), and DTE Energy Co (NYSE:DTE). This group of stocks are the members of the electric utilities industry and their market caps match ETR’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
The AES Corporation (NYSE:AES) 19 2 1
Calpine Corporation (NYSE:CPN) 22 0 0
Wisconsin Energy Corporation (NYSE:WEC) 10 1 6
Chesapeake Energy Corporation (NYSE:CHK) 38 2 2
DTE Energy Co (NYSE:DTE) 10 1 11

With the returns shown by Insider Monkey’s strategies, retail investors must always watch hedge fund and insider trading activity, and Entergy Corporation (NYSE:ETR) is no exception.

Related tickers: Entergy Corporation (NYSE:ETR), The AES Corporation (NYSE:AES), Calpine Corporation (NYSE:CPN), Wisconsin Energy Corporation (NYSE:WEC), Chesapeake Energy Corporation (NYSE:CHK), DTE Energy Co (NYSE:DTE)

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!