Is it smart to be bullish on Associated Banc Corp (NASDAQ:ASBC)?
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Just as useful, positive insider trading activity is a second way to analyze the stock market universe. As the old adage goes: there are a number of reasons for a corporate insider to sell shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of academic studies have demonstrated the market-beating potential of this tactic if piggybackers know what to do (learn more here).
Furthermore, we’re going to examine the newest info about Associated Banc Corp (NASDAQ:ASBC).
What have hedge funds been doing with Associated Banc Corp (NASDAQ:ASBC)?
At the end of the second quarter, a total of 10 of the hedge funds we track were bullish in this stock, a change of 11% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their stakes substantially.
When using filings from the hedgies we track, Dreman Value Management, managed by David Dreman, holds the most valuable position in Associated Banc Corp (NASDAQ:ASBC). Dreman Value Management has a $39.7 million position in the stock, comprising 1.2% of its 13F portfolio. Sitting at the No. 2 spot is Ken Griffin of Citadel Investment Group, with a $33.1 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other peers with similar optimism include Chuck Royce’s Royce & Associates, Cliff Asness’s AQR Capital Management and Jim Simons’s Renaissance Technologies.
As one would understandably expect, specific money managers were leading the bulls’ herd. Dreman Value Management, managed by David Dreman, initiated the most valuable position in Associated Banc Corp (NASDAQ:ASBC). Dreman Value Management had 39.7 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $33.1 million position during the quarter. The other funds with new positions in the stock are Chuck Royce’s Royce & Associates, Cliff Asness’s AQR Capital Management, and Jim Simons’s Renaissance Technologies.
Insider trading activity in Associated Banc Corp (NASDAQ:ASBC)
Bullish insider trading is at its handiest when the company we’re looking at has experienced transactions within the past half-year. Over the last half-year time period, Associated Banc Corp (NASDAQ:ASBC) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Associated Banc Corp (NASDAQ:ASBC). These stocks are Wintrust Financial Corp (NASDAQ:WTFC), Old National Bancorp (NYSE:ONB), PrivateBancorp Inc (NASDAQ:PVTB), Firstmerit Corp (NASDAQ:FMER), and TFS Financial Corporation (NASDAQ:TFSL). This group of stocks are in the regional – midwest banks industry and their market caps are closest to ASBC’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Wintrust Financial Corp (NASDAQ:WTFC)||12||0||0|
|Old National Bancorp (NYSE:ONB)||10||0||0|
|PrivateBancorp Inc (NASDAQ:PVTB)||22||0||0|
|Firstmerit Corp (NASDAQ:FMER)||13||0||0|
|TFS Financial Corporation (NASDAQ:TFSL)||12||0||0|
Using the returns demonstrated by Insider Monkey’s research, average investors should always pay attention to hedge fund and insider trading sentiment, and Associated Banc Corp (NASDAQ:ASBC) shareholders fit into this picture quite nicely.