CIRCOR International, Inc. (NYSE:CIR) was in 12 hedge funds’ portfolio at the end of the first quarter of 2013. CIR has seen a decrease in hedge fund sentiment of late. There were 12 hedge funds in our database with CIR positions at the end of the previous quarter.
Equally as integral, optimistic insider trading sentiment is a second way to parse down the financial markets. There are plenty of reasons for an insider to get rid of shares of his or her company, but only one, very simple reason why they would buy. Many empirical studies have demonstrated the valuable potential of this method if shareholders understand where to look (learn more here).
With all of this in mind, let’s take a look at the recent action regarding CIRCOR International, Inc. (NYSE:CIR).
How are hedge funds trading CIRCOR International, Inc. (NYSE:CIR)?
Heading into Q2, a total of 12 of the hedge funds we track were bullish in this stock, a change of 0% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes substantially.
According to our comprehensive database, GAMCO Investors, managed by Mario Gabelli, holds the most valuable position in CIRCOR International, Inc. (NYSE:CIR). GAMCO Investors has a $85.1 million position in the stock, comprising 0.5% of its 13F portfolio. Sitting at the No. 2 spot is Richard S. Pzena of Pzena Investment Management, with a $23.6 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include Chuck Royce’s Royce & Associates, Israel Englander’s Millennium Management and Joel Greenblatt’s Gotham Asset Management.
Seeing as CIRCOR International, Inc. (NYSE:CIR) has witnessed a declination in interest from the entirety of the hedge funds we track, we can see that there lies a certain “tier” of funds that slashed their positions entirely at the end of the first quarter. Interestingly, Jeffrey Smith’s Starboard Value LP sold off the biggest investment of the “upper crust” of funds we monitor, totaling an estimated $1 million in stock., and D. E. Shaw of D E Shaw was right behind this move, as the fund said goodbye to about $0.3 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
How have insiders been trading CIRCOR International, Inc. (NYSE:CIR)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company we’re looking at has experienced transactions within the past 180 days. Over the last half-year time frame, CIRCOR International, Inc. (NYSE:CIR) has experienced zero unique insiders buying, and 4 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to CIRCOR International, Inc. (NYSE:CIR). These stocks are EnPro Industries, Inc. (NYSE:NPO), Mueller Water Products, Inc. (NYSE:MWA), Sun Hydraulics Corporation (NASDAQ:SNHY), Standex Int’l Corp. (NYSE:SXI), and H&E Equipment Services, Inc. (NASDAQ:HEES). All of these stocks are in the industrial equipment & components industry and their market caps match CIR’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| EnPro Industries, Inc. (NYSE:NPO) | 17 | 1 | 1 |
| Mueller Water Products, Inc. (NYSE:MWA) | 31 | 3 | 1 |
| Sun Hydraulics Corporation (NASDAQ:SNHY) | 5 | 0 | 3 |
| Standex Int’l Corp. (NYSE:SXI) | 7 | 0 | 4 |
| H&E Equipment Services, Inc. (NASDAQ:HEES) | 7 | 0 | 4 |
With the returns demonstrated by our tactics, everyday investors must always monitor hedge fund and insider trading activity, and CIRCOR International, Inc. (NYSE:CIR) is an important part of this process.
