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

Is AGCO Corporation (NYSE:AGCO) an attractive investment right now? The best stock pickers are getting more optimistic. The number of long hedge fund bets improved by 5 in recent months.

In the 21st century investor’s toolkit, there are plenty of metrics market participants can use to monitor stocks. Some of the most useful are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best money managers can outperform their index-focused peers by a solid amount (see just how much).

Just as beneficial, optimistic insider trading sentiment is a second way to break down the marketplace. There are a number of reasons for a bullish insider to sell shares of his or her company, but just one, very simple reason why they would initiate a purchase. Several empirical studies have demonstrated the useful potential of this method if shareholders understand where to look (learn more here).

Now, let’s take a look at the latest action surrounding AGCO Corporation (NYSE:AGCO).

How have hedgies been trading AGCO Corporation (NYSE:AGCO)?

Heading into Q2, a total of 25 of the hedge funds we track were long in this stock, a change of 25% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their holdings significantly.

Of the funds we track, Vinik Asset Management, managed by Jeffrey Vinik, holds the most valuable position in AGCO Corporation (NYSE:AGCO). Vinik Asset Management has a $40 million position in the stock, comprising 1.1% of its 13F portfolio. Sitting at the No. 2 spot is Balyasny Asset Management, managed by Dmitry Balyasny, which held a $29.3 million position; 0.4% of its 13F portfolio is allocated to the stock. Remaining peers with similar optimism include Zac Hirzel’s Hirzel Capital Management, D. E. Shaw’s D E Shaw and Alexander Roepers’s Atlantic Investment Management.

As aggregate interest increased, some big names were leading the bulls’ herd. Balyasny Asset Management, managed by Dmitry Balyasny, created the most valuable position in AGCO Corporation (NYSE:AGCO). Balyasny Asset Management had 29.3 million invested in the company at the end of the quarter. Alexander Roepers’s Atlantic Investment Management also made a $16.2 million investment in the stock during the quarter. The other funds with new positions in the stock are Alexander Mitchell’s Scopus Asset Management, Joel Greenblatt’s Gotham Asset Management, and Neil Chriss’s Hutchin Hill Capital.

What have insiders been doing with AGCO Corporation (NYSE:AGCO)?

Insider buying is particularly usable when the company in focus has seen transactions within the past 180 days. Over the latest 180-day time period, AGCO Corporation (NYSE:AGCO) has seen 2 unique insiders buying, and 5 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to AGCO Corporation (NYSE:AGCO). These stocks are Lindsay Corporation (NYSE:LNN), CNH Global NV (ADR) (NYSE:CNH), Manitowoc Company, Inc. (NYSE:MTW), Terex Corporation (NYSE:TEX), and Joy Global Inc. (NYSE:JOY). All of these stocks are in the farm & construction machinery industry and their market caps match AGCO’s market cap.