At the moment, there are a multitude of gauges market participants can use to watch the equity markets. A pair of the most useful are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best investment managers can trounce their index-focused peers by a solid amount (see just how much).
Just as crucial, bullish insider trading activity is another way to analyze the marketplace. As the old adage goes: there are plenty of motivations for an executive to cut shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the market-beating potential of this tactic if you know what to do (learn more here).
Furthermore, we’re going to analyze the recent info for Ducommun Incorporated (NYSE:DCO).
Hedge fund activity in Ducommun Incorporated (NYSE:DCO)
At Q2’s end, a total of 9 of the hedge funds we track held long positions in this stock, a change of 29% from the first quarter. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their holdings substantially.
Out of the hedge funds we follow, Royce & Associates, managed by Chuck Royce, holds the largest position in Ducommun Incorporated (NYSE:DCO). Royce & Associates has a $5.2 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Coming in second is Jim Simons of Renaissance Technologies, with a $2 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include Mario Gabelli’s GAMCO Investors, Ken Griffin’s Citadel Investment Group and Peter Algert and Kevin Coldiron’s Algert Coldiron Investors.
Consequently, particular hedge funds were leading the bulls’ herd. Royce & Associates, managed by Chuck Royce, assembled the largest position in Ducommun Incorporated (NYSE:DCO). Royce & Associates had 5.2 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $2 million investment in the stock during the quarter. The other funds with new positions in the stock are Mario Gabelli’s GAMCO Investors, Ken Griffin’s Citadel Investment Group, and Peter Algert and Kevin Coldiron’s Algert Coldiron Investors.
How have insiders been trading Ducommun Incorporated (NYSE:DCO)?
Legal insider trading, particularly when it’s bullish, is best served when the company we’re looking at has seen transactions within the past half-year. Over the latest six-month time period, Ducommun Incorporated (NYSE:DCO) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Ducommun Incorporated (NYSE:DCO). These stocks are Astronics Corporation (NASDAQ:ATRO), TASER International, Inc. (NASDAQ:TASR), AeroVironment, Inc. (NASDAQ:AVAV), Erickson Air-Crane Inc (NASDAQ:EAC), and LMI Aerospace, Inc. (NASDAQ:LMIA). This group of stocks belong to the aerospace/defense products & services industry and their market caps are closest to DCO’s market cap.