Is Allegheny Technologies Incorporated (NYSE:ATI) a good investment?
At the moment, there are a multitude of metrics market participants can use to watch their holdings. A duo of the most useful are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite fund managers can beat the S&P 500 by a healthy amount (see just how much).
Equally as useful, positive insider trading activity is a second way to look at the world of equities. There are a number of motivations for a corporate insider to downsize shares of his or her company, but only one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the valuable potential of this strategy if piggybackers know where to look (learn more here).
Thus, we’re going to discuss the recent info surrounding Allegheny Technologies Incorporated (NYSE:ATI).
How are hedge funds trading Allegheny Technologies Incorporated (NYSE:ATI)?
At the end of the second quarter, a total of 23 of the hedge funds we track were bullish in this stock, a change of 0% from the previous quarter.
Because Allegheny Technologies Incorporated (NYSE:ATI) has faced bearish sentiment from upper-tier hedge fund managers, it’s easy to see that there exists a select few fund managers who were dropping their full holdings last quarter. At the top of the heap, Sanford J. Colen’s Apex Capital cut the largest investment of all the hedgies we watch, totaling close to $12.7 million in stock, and Dmitry Balyasny of Balyasny Asset Management was right behind this move, as the fund cut about $11.1 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Insider trading activity in Allegheny Technologies Incorporated (NYSE:ATI)
Insider buying is particularly usable when the company in question has experienced transactions within the past 180 days. Over the latest half-year time period, Allegheny Technologies Incorporated (NYSE:ATI) has experienced zero unique insiders buying, 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 Allegheny Technologies Incorporated (NYSE:ATI). These stocks are Reliance Steel & Aluminum (NYSE:RS), Worthington Industries, Inc. (NYSE:WOR), Chart Industries, Inc. (NASDAQ:GTLS), Carpenter Technology Corporation (NYSE:CRS), and Valmont Industries, Inc. (NYSE:VMI). This group of stocks belong to the metal fabrication industry and their market caps resemble ATI’s market cap.