Is it smart to be bullish on EverBank Financial Corp (NYSE:EVER)?
In the 21st century investor’s toolkit, there are dozens of indicators market participants can use to analyze stocks. Two of the most useful are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best investment managers can outperform the market by a significant amount (see just how much).
Just as useful, positive insider trading sentiment is another way to look at the stock market universe. There are plenty of motivations for an executive to drop shares of his or her company, but just one, very simple reason why they would buy. Plenty of empirical studies have demonstrated the valuable potential of this method if investors understand where to look (learn more here).
Furthermore, we're going to study the recent info about EverBank Financial Corp (NYSE:EVER).
At Q2's end, a total of 9 of the hedge funds we track held long positions in this stock, a change of -10% from the previous quarter. With the smart money's positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their holdings meaningfully.
When using filings from the hedgies we track, Edward Gilhuly and Scott Stuart's Sageview Capital had the most valuable position in EverBank Financial Corp (NYSE:EVER), worth close to $213.8 million, comprising 58.1% of its total 13F portfolio. Coming in second is Steven B. Klinsky of New Mountain Capital, with a $144.7 million position; the fund has 80.7% of its 13F portfolio invested in the stock. Other peers that hold long positions include Tom Brown's Second Curve Capital, Jim Simons's Renaissance Technologies and David Costen Haley's HBK Investments.
As EverBank Financial Corp (NYSE:EVER) has faced declining interest from the top-tier hedge fund industry, logic holds that there were a few hedge funds who sold off their entire stakes in Q1. Intriguingly, Anand Parekh's Alyeska Investment Group sold off the largest investment of the "upper crust" of funds we track, valued at close to $1.6 million in call options., and Ken Griffin of Citadel Investment Group was right behind this move, as the fund said goodbye to about $0.8 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 1 funds in Q1.
Insider buying is most useful when the company in question has seen transactions within the past 180 days. Over the latest half-year time frame, EverBank Financial Corp (NYSE:EVER) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We'll also review the relationship between both of these indicators in other stocks similar to EverBank Financial Corp (NYSE:EVER). These stocks are IBERIABANK Corporation (NASDAQ:IBKC), BancorpSouth, Inc. (NYSE:BXS), Bank Of The Ozarks Inc (NASDAQ:OZRK), Trustmark Corp (NASDAQ:TRMK), and F.N.B. Corp (NYSE:FNB). This group of stocks belong to the regional - southeast banks industry and their market caps match EVER's market cap.