Is Barnes Group Inc. (NYSE:B) ready to rally soon? Prominent investors are taking an optimistic view. The number of bullish hedge fund bets increased by 3 in recent months.
To the average investor, there are many gauges market participants can use to track their holdings. Some of the most useful are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite fund managers can outclass the broader indices by a significant amount (see just how much).
Equally as integral, positive insider trading activity is a second way to parse down the stock market universe. As the old adage goes: there are plenty of motivations for a corporate insider to get rid of shares of his or her company, but just one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the valuable potential of this method if shareholders understand what to do (learn more here).
With these “truths” under our belt, it’s important to take a gander at the latest action regarding Barnes Group Inc. (NYSE:B).
How have hedgies been trading Barnes Group Inc. (NYSE:B)?
At the end of the fourth quarter, a total of 13 of the hedge funds we track were bullish in this stock, a change of 30% from the third quarter. With hedgies’ sentiment swirling, there exists a few notable hedge fund managers who were upping their holdings significantly.
When looking at the hedgies we track, Dreman Value Management, managed by David Dreman, holds the largest position in Barnes Group Inc. (NYSE:B). Dreman Value Management has a $14.3 million position in the stock, comprising 0.4% of its 13F portfolio. On Dreman Value Management’s heels is Royce & Associates, managed by Chuck Royce, which held a $12.4 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other peers that hold long positions include Ken Griffin’s Citadel Investment Group, Jim Simons’s Renaissance Technologies and Cliff Asness’s AQR Capital Management.
As industrywide interest jumped, specific money managers were leading the bulls’ herd. Renaissance Technologies, managed by Jim Simons, created the most valuable position in Barnes Group Inc. (NYSE:B). Renaissance Technologies had 5.7 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also initiated a $2.2 million position during the quarter. The other funds with brand new B positions are Israel Englander’s Millennium Management, Glenn Russell Dubin’s Highbridge Capital Management, and Paul Tudor Jones’s Tudor Investment Corp.
What do corporate executives and insiders think about Barnes Group Inc. (NYSE:B)?
Insider buying is most useful when the company in question has experienced transactions within the past six months. Over the latest six-month time frame, Barnes Group Inc. (NYSE:B) has experienced 1 unique insiders purchasing, and 7 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Barnes Group Inc. (NYSE:B). These stocks are Sun Hydraulics Corporation (NASDAQ:SNHY), Mueller Water Products, Inc. (NYSE:MWA), EnPro Industries, Inc. (NYSE:NPO), TriMas Corp (NASDAQ:TRS), and Watts Water Technologies Inc (NYSE:WTS). All of these stocks are in the industrial equipment & components industry and their market caps are closest to B’s market cap.