Terex Corporation (TEX): Hedge Funds Are Bearish and Insiders Are Bullish, What Should You Do?

Page 1 of 2

Is Terex Corporation (NYSE:TEX) now a sell?

In today’s marketplace, there are a multitude of metrics shareholders can use to monitor publicly traded companies. A couple of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top money managers can outperform their index-focused peers by a solid margin (see just how much).

Terex Corporation (NYSE:TEX)

Just as crucial, bullish insider trading activity is another way to analyze the stock market universe. Obviously, there are plenty of stimuli for an upper level exec to drop shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the useful potential of this tactic if investors know where to look (learn more here).

Now that that’s out of the way, it’s important to examine the latest info surrounding Terex Corporation (NYSE:TEX).

What have hedge funds been doing with Terex Corporation (NYSE:TEX)?

Heading into Q3, a total of 22 of the hedge funds we track were long in this stock, a change of -27% from the previous quarter. With hedgies’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were upping their stakes substantially.

Out of the hedge funds we follow, Alan Fournier’s Pennant Capital Management had the largest position in Terex Corporation (NYSE:TEX), worth close to $211.2 million, accounting for 3.9% of its total 13F portfolio. Coming in second is Relational Investors, managed by Ralph V. Whitworth, which held a $65.8 million position; 1.2% of its 13F portfolio is allocated to the company. Other hedgies that hold long positions include David Tepper’s Appaloosa Management LP, Sean Cullinan’s Point State Capital and Phill Gross and Robert Atchinson’s Adage Capital Management.

As Terex Corporation (NYSE:TEX) has witnessed dropping sentiment from the top-tier hedge fund industry, it’s easy to see that there was a specific group of fund managers that elected to cut their entire stakes in Q1. At the top of the heap, Robert Bishop’s Impala Asset Management dumped the largest position of the “upper crust” of funds we monitor, totaling close to $18.4 million in stock. Joe DiMenna’s fund, ZWEIG DIMENNA PARTNERS, also said goodbye to its stock, about $17.1 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 8 funds in Q1.

How have insiders been trading Terex Corporation (NYSE:TEX)?

Bullish insider trading is best served when the primary stock in question has seen transactions within the past 180 days. Over the last 180-day time period, Terex Corporation (NYSE:TEX) has seen 2 unique insiders purchasing, and 7 insider sales (see the details of insider trades here).

We’ll also examine the relationship between both of these indicators in other stocks similar to Terex Corporation (NYSE:TEX). These stocks are Lindsay Corporation (NYSE:LNN), CNH Global NV (ADR) (NYSE:CNH), Joy Global Inc. (NYSE:JOY), Manitowoc Company, Inc. (NYSE:MTW), and AGCO Corporation (NYSE:AGCO). This group of stocks are in the farm & construction machinery industry and their market caps are closest to TEX’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!