Should Edgen Group Inc (NYSE:EDG) investors track the following data?
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Equally as crucial, positive insider trading sentiment is a second way to look at the financial markets. Just as you’d expect, there are lots of incentives for a bullish insider to drop shares of his or her company, but just one, very obvious reason why they would buy. Various empirical studies have demonstrated the valuable potential of this strategy if investors understand where to look (learn more here).
What’s more, let’s discuss the latest info about Edgen Group Inc (NYSE:EDG).
How have hedgies been trading Edgen Group Inc (NYSE:EDG)?
Heading into Q3, a total of 6 of the hedge funds we track were long in this stock, a change of -25% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their holdings meaningfully.
When using filings from the hedgies we track, Kingdon Capital, managed by Mark Kingdon, holds the biggest position in Edgen Group Inc (NYSE:EDG). Kingdon Capital has a $3.8 million position in the stock, comprising 0.2% of its 13F portfolio. The second largest stake is held by Richard Driehaus of Driehaus Capital, with a $3.2 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining hedge funds with similar optimism include Brian Taylor’s Pine River Capital Management, Israel Englander’s Millennium Management and D. E. Shaw’s D E Shaw.
Judging by the fact that Edgen Group Inc (NYSE:EDG) has experienced dropping sentiment from the smart money’s best and brightest, it’s safe to say that there exists a select few hedgies who were dropping their full holdings last quarter. Intriguingly, John Burbank’s Passport Capital cut the largest investment of all the hedgies we monitor, totaling about $7.3 million in stock, and Ryan Schaper of Point Lobos Capital was right behind this move, as the fund dropped about $3.6 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 2 funds last quarter.
What do corporate executives and insiders think about Edgen Group Inc (NYSE:EDG)?
Legal insider trading, particularly when it’s bullish, is most useful when the company in focus has experienced transactions within the past half-year. Over the latest half-year time period, Edgen Group Inc (NYSE:EDG) has seen zero unique insiders buying, 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 Edgen Group Inc (NYSE:EDG). These stocks are RTI International Metals, Inc. (NYSE:RTI), Susser Petroleum Partners LP (NYSE:SUSP), Newport Corporation (NASDAQ:NEWP), Lawson Products, Inc. (NASDAQ:LAWS), and Houston Wire & Cable Company (NASDAQ:HWCC). This group of stocks are the members of the industrial equipment wholesale industry and their market caps resemble EDG’s market cap.