Is Genesee & Wyoming Inc (NYSE:GWR) ready to rally soon? The best stock pickers are becoming hopeful. The number of long hedge fund positions went up by 3 recently.
In the 21st century investor’s toolkit, there are dozens of methods shareholders can use to analyze publicly traded companies. Two of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top fund managers can outpace the market by a superb margin (see just how much).
Equally as integral, bullish insider trading sentiment is another way to parse down the financial markets. As the old adage goes: there are lots of incentives for a corporate insider to downsize shares of his or her company, but only one, very simple reason why they would buy. Several empirical studies have demonstrated the valuable potential of this tactic if shareholders understand what to do (learn more here).
Keeping this in mind, we’re going to take a peek at the key action regarding Genesee & Wyoming Inc (NYSE:GWR).
How have hedgies been trading Genesee & Wyoming Inc (NYSE:GWR)?
At Q1’s end, a total of 23 of the hedge funds we track were bullish in this stock, a change of 15% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their holdings substantially.
When looking at the hedgies we track, Oaktree Capital Management, managed by Howard Marks, holds the biggest position in Genesee & Wyoming Inc (NYSE:GWR). Oaktree Capital Management has a $59.7 million position in the stock, comprising 1.2% of its 13F portfolio. The second largest stake is held by Goodnow Investment Group, managed by Edward Goodnow, which held a $40.7 million position; 8.7% of its 13F portfolio is allocated to the company. Other hedge funds that are bullish include Donald Chiboucis’s Columbus Circle Investors, Alexander Mitchell’s Scopus Asset Management and Israel Englander’s Millennium Management.
With a general bullishness amongst the heavyweights, specific money managers have been driving this bullishness. Scopus Asset Management, managed by Alexander Mitchell, established the biggest position in Genesee & Wyoming Inc (NYSE:GWR). Scopus Asset Management had 27.7 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also made a $6.1 million investment in the stock during the quarter. The other funds with brand new GWR positions are Bruce Kovner’s Caxton Associates LP, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and J. Alan Reid, Jr.’s Forward Management.
How are insiders trading Genesee & Wyoming Inc (NYSE:GWR)?
Bullish insider trading is best served when the primary stock in question has seen transactions within the past 180 days. Over the last six-month time period, Genesee & Wyoming Inc (NYSE:GWR) has experienced 1 unique insiders purchasing, and 5 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Genesee & Wyoming Inc (NYSE:GWR). These stocks are Canadian Pacific Railway Limited (USA) (NYSE:CP), Kansas City Southern (NYSE:KSU), Guangshen Railway Co. Ltd (ADR) (NYSE:GSH), Trinity Industries, Inc. (NYSE:TRN), and Westinghouse Air Brake Technologies Corp (NYSE:WAB). This group of stocks are in the railroads industry and their market caps are similar to GWR’s market cap.