Is PDC Energy Inc (NASDAQ:PDCE) the right pick for your portfolio? The smart money is in a bullish mood. The number of bullish hedge fund positions inched up by 1 recently.
In the financial world, there are dozens of indicators shareholders can use to track stocks. Some of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top hedge fund managers can outclass the S&P 500 by a superb amount (see just how much).
Equally as integral, positive insider trading activity is another way to break down the marketplace. Obviously, there are plenty of reasons for an executive to cut shares of his or her company, but only one, very clear reason why they would buy. Various academic studies have demonstrated the useful potential of this tactic if “monkeys” understand where to look (learn more here).
Now, let’s take a glance at the latest action regarding PDC Energy Inc (NASDAQ:PDCE).
How are hedge funds trading PDC Energy Inc (NASDAQ:PDCE)?
At year’s end, a total of 11 of the hedge funds we track held long positions in this stock, a change of 10% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their stakes meaningfully.
When looking at the hedgies we track, Sean Cullinan’s Point State Capital had the biggest position in PDC Energy Inc (NASDAQ:PDCE), worth close to $35 million, comprising 0.5% of its total 13F portfolio. On Point State Capital’s heels is Phill Gross and Robert Atchinson of Adage Capital Management, with a $30 million position; 0.5% of its 13F portfolio is allocated to the company. Some other hedge funds that are bullish include Donald Chiboucis’s Columbus Circle Investors, Israel Englander’s Millennium Management and Chuck Royce’s Royce & Associates.
As aggregate interest increased, specific money managers were leading the bulls’ herd. Point State Capital, managed by Sean Cullinan, assembled the largest position in PDC Energy Inc (NASDAQ:PDCE). Point State Capital had 35 million invested in the company at the end of the quarter. Donald Chiboucis’s Columbus Circle Investors also made a $20 million investment in the stock during the quarter. The other funds with new positions in the stock are Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners, John Fichthorn’s Dialectic Capital Management, and Cliff Asness’s AQR Capital Management.
How are insiders trading PDC Energy Inc (NASDAQ:PDCE)?
Insider buying is best served when the company in question has experienced transactions within the past 180 days. Over the latest 180-day time frame, PDC Energy Inc (NASDAQ:PDCE) has experienced zero unique insiders purchasing, and 5 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to PDC Energy Inc (NASDAQ:PDCE). These stocks are Enbridge Energy Management, L.L.C. (NYSE:EEQ), Gran Tierra Energy Inc. (NYSEAMEX:GTE), Crosstex Energy, L.P. (NASDAQ:XTEX), EXCO Resources Inc (NYSE:XCO), and Bonanza Creek Energy Inc (NYSE:BCEI). All of these stocks are in the independent oil & gas industry and their market caps resemble PDCE’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Enbridge Energy Management, L.L.C. (NYSE:EEQ)||4||3||0|
|Gran Tierra Energy Inc. (NYSEAMEX:GTE)||16||0||1|
|Crosstex Energy, L.P. (NASDAQ:XTEX)||3||0||2|
|EXCO Resources Inc (NYSE:XCO)||19||0||0|
|Bonanza Creek Energy Inc (NYSE:BCEI)||7||0||2|
With the results demonstrated by our tactics, everyday investors should always keep an eye on hedge fund and insider trading activity, and PDC Energy Inc (NASDAQ:PDCE) is no exception.