Is E I Du Pont De Nemours And Co (NYSE:DD) a buy?
To the average investor, there are tons of metrics investors can use to watch publicly traded companies. A pair of the best are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best investment managers can outpace their index-focused peers by a superb amount (see just how much).
Just as necessary, positive insider trading sentiment is a second way to look at the investments you’re interested in. Just as you’d expect, there are plenty of motivations for an insider to drop shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of empirical studies have demonstrated the useful potential of this tactic if “monkeys” understand what to do (learn more here).
Now that that’s out of the way, we’re going to analyze the newest info for E I Du Pont De Nemours And Co (NYSE:DD).
What have hedge funds been doing with E I Du Pont De Nemours And Co (NYSE:DD)?
At the end of the second quarter, a total of 31 of the hedge funds we track were long in this stock, a change of 19% from the previous quarter. With hedge funds’ sentiment swirling, there exists a few key hedge fund managers who were increasing their stakes considerably.
According to our 13F database, Nelson Peltz’s Trian Partners had the biggest position in E I Du Pont De Nemours And Co (NYSE:DD), worth close to $303.4 million, comprising 6% of its total 13F portfolio. Coming in second is Corvex Capital, managed by Keith Meister, which held a $183.8 million call position; 3.5% of its 13F portfolio is allocated to the stock. Some other hedge funds that are bullish include John A. Levin’s Levin Capital Strategies, and Matt McLennan’s First Eagle Investment Management.
As one would understandably expect, certain money managers were breaking ground themselves. Trian Partners, managed by Nelson Peltz, assembled the most valuable position in E I Du Pont De Nemours And Co (NYSE:DD). Trian Partners had 303.4 million invested in the company at the end of the quarter. Keith Meister’s Corvex Capital also initiated a $183.8 million position during the quarter. The other funds with new positions in the stock are John A. Levin’s Levin Capital Strategies, Daniel S. Och’s OZ Management, and Matt McLennan’s First Eagle Investment Management.
How have insiders been trading E I Du Pont De Nemours And Co (NYSE:DD)?
Legal insider trading, particularly when it’s bullish, is at its handiest when the company in question has experienced transactions within the past six months. Over the last six-month time frame, E I Du Pont De Nemours And Co (NYSE:DD) has seen zero unique insiders purchasing, and 7 insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to E I Du Pont De Nemours And Co (NYSE:DD). These stocks are FMC Corp (NYSE:FMC), Eastman Chemical Company (NYSE:EMN), Sociedad Quimica y Minera (ADR) (NYSE:SQM), Air Products & Chemicals, Inc. (NYSE:APD), and The Dow Chemical Company (NYSE:DOW). This group of stocks belong to the chemicals – major diversified industry and their market caps are similar to DD’s market cap.