Applied Industrial Technologies (NYSE:AIT) has seen an increase in activity from the world’s largest hedge funds recently.
To the average investor, there are plenty of gauges market participants can use to watch Mr. Market. A couple of the most underrated 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 best money managers can outperform their index-focused peers by a significant margin (see just how much).
Just as beneficial, positive insider trading sentiment is a second way to break down the financial markets. As the old adage goes: there are a variety of motivations for a corporate 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 useful potential of this strategy if investors understand where to look (learn more here).
With all of this in mind, let’s take a look at the recent action encompassing Applied Industrial Technologies (NYSE:AIT).
Hedge fund activity in Applied Industrial Technologies (NYSE:AIT)
At year’s end, a total of 8 of the hedge funds we track were bullish in this stock, a change of 14% from one quarter earlier. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their holdings significantly.
According to our comprehensive database, Royce & Associates, managed by Chuck Royce, holds the most valuable position in Applied Industrial Technologies (NYSE:AIT). Royce & Associates has a $231.9 million position in the stock, comprising 0.8% of its 13F portfolio. The second largest stake is held by Jim Simons of Renaissance Technologies, with a $9.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other peers that hold long positions include Cliff Asness’s AQR Capital Management, D. E. Shaw’s D E Shaw and Israel Englander’s Millennium Management.
Now, key money managers were breaking ground themselves. D E Shaw, managed by D. E. Shaw, initiated the most outsized position in Applied Industrial Technologies (NYSE:AIT). D E Shaw had 1.9 million invested in the company at the end of the quarter. David Costen Haley’s HBK Investments also initiated a $0.3 million position during the quarter. The following funds were also among the new AIT investors: Ken Gray and Steve Walsh’s Bryn Mawr Capital and Ken Griffin’s Citadel Investment Group.
What do corporate executives and insiders think about Applied Industrial Technologies (NYSE:AIT)?
Insider purchases made by high-level executives is particularly usable when the company in focus has seen transactions within the past six months. Over the latest 180-day time frame, Applied Industrial Technologies (NYSE:AIT) has experienced zero unique insiders purchasing, and 7 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Applied Industrial Technologies (NYSE:AIT). These stocks are Susser Petroleum Partners LP (NYSE:SUSP), RTI International Metals, Inc. (NYSE:RTI), DXP Enterprises Inc (NASDAQ:DXPE), WESCO International, Inc. (NYSE:WCC), and Wesco Aircraft Holdings Inc (NYSE:WAIR). This group of stocks are in the industrial equipment wholesale industry and their market caps are closest to AIT’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Susser Petroleum Partners LP (NYSE:SUSP)||4||0||0|
|RTI International Metals, Inc. (NYSE:RTI)||5||1||5|
|DXP Enterprises Inc (NASDAQ:DXPE)||4||0||4|
|WESCO International, Inc. (NYSE:WCC)||22||0||7|
|Wesco Aircraft Holdings Inc (NYSE:WAIR)||8||0||4|
With the returns demonstrated by our strategies, retail investors should always watch hedge fund and insider trading sentiment, and Applied Industrial Technologies (NYSE:AIT) applies perfectly to this mantra.