Is Tesco Corporation (USA) (NASDAQ:TESO) a bargain? The best stock pickers are in a bearish mood. The number of long hedge fund positions dropped by 1 recently.
In today’s marketplace, there are dozens of metrics shareholders can use to monitor stocks. A couple of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best investment managers can outclass the broader indices by a superb margin (see just how much).
Just as beneficial, positive insider trading sentiment is a second way to parse down the world of equities. Just as you'd expect, there are plenty of reasons for an insider to get rid of shares of his or her company, but just one, very clear reason why they would initiate a purchase. Various academic studies have demonstrated the useful potential of this tactic if investors understand what to do (learn more here).
Keeping this in mind, let's take a glance at the latest action surrounding Tesco Corporation (USA) (NASDAQ:TESO).
At Q1's end, a total of 13 of the hedge funds we track were long in this stock, a change of -7% from one quarter earlier. With hedge funds' positions undergoing their usual ebb and flow, there exists an "upper tier" of key hedge fund managers who were increasing their stakes considerably.
Of the funds we track, Chuck Royce's Royce & Associates had the largest position in Tesco Corporation (USA) (NASDAQ:TESO), worth close to $45.2 million, comprising 0.1% of its total 13F portfolio. The second largest stake is held by AQR Capital Management, managed by Cliff Asness, which held a $8.6 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining hedgies with similar optimism include Israel Englander's Millennium Management, John Overdeck and David Siegel's Two Sigma Advisors and D. E. Shaw's D E Shaw.
Seeing as Tesco Corporation (USA) (NASDAQ:TESO) has faced a declination in interest from the entirety of the hedge funds we track, we can see that there was a specific group of money managers that elected to cut their entire stakes at the end of the first quarter. Intriguingly, Dmitry Balyasny's Balyasny Asset Management cut the largest position of the "upper crust" of funds we monitor, totaling about $16.3 million in stock., and Donald Yacktman of Yacktman Asset Management was right behind this move, as the fund cut about $2 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 1 funds at the end of the first quarter.
Insider purchases made by high-level executives is particularly usable when the company in question has experienced transactions within the past 180 days. Over the last six-month time frame, Tesco Corporation (USA) (NASDAQ:TESO) has seen zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).
Let's check out hedge fund and insider activity in other stocks similar to Tesco Corporation (USA) (NASDAQ:TESO). These stocks are TETRA Technologies, Inc. (NYSE:TTI), Newpark Resources Inc (NYSE:NR), Synergy Resources Corp (NYSEAMEX:SYRG), Basic Energy Services, Inc (NYSE:BAS), and Willbros Group Inc (NYSE:WG). This group of stocks are in the oil & gas equipment & services industry and their market caps match TESO's market cap.