Parker Drilling Company (NYSE:PKD) investors should be aware of an increase in support from the world’s most elite money managers lately.
To the average investor, there are plenty of gauges market participants can use to watch Mr. Market. A pair 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 solid margin (see just how much).
Just as key, positive insider trading sentiment is another way to parse down the world of equities. Obviously, there are many motivations for an insider to get rid of shares of his or her company, but just one, very simple reason why they would buy. Various empirical studies have demonstrated the market-beating potential of this tactic if investors know what to do (learn more here).
Consequently, we’re going to take a look at the latest action encompassing Parker Drilling Company (NYSE:PKD).
How have hedgies been trading Parker Drilling Company (NYSE:PKD)?
At year’s end, a total of 16 of the hedge funds we track held long positions in this stock, a change of 14% from one quarter earlier. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were boosting their holdings meaningfully.
When looking at the hedgies we track, Cliff Asness’s AQR Capital Management had the biggest position in Parker Drilling Company (NYSE:PKD), worth close to $12 million, comprising 0.1% of its total 13F portfolio. The second largest stake is held by Blue Mountain Capital, managed by Andrew Feldstein and Stephen Siderow, which held a $3 million position; 0.2% of its 13F portfolio is allocated to the company. Some other hedge funds that hold long positions include Joel Greenblatt’s Gotham Asset Management, Boaz Weinstein’s Saba Capital and Israel Englander’s Millennium Management.
As aggregate interest increased, key hedge funds have jumped into Parker Drilling Company (NYSE:PKD) headfirst. Saba Capital, managed by Boaz Weinstein, assembled the largest position in Parker Drilling Company (NYSE:PKD). Saba Capital had 2 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $0 million investment in the stock during the quarter. The following funds were also among the new PKD investors: Neil Chriss’s Hutchin Hill Capital, Mike Vranos’s Ellington, and Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners.
How have insiders been trading Parker Drilling Company (NYSE:PKD)?
Insider purchases made by high-level executives is particularly usable when the primary stock in question has experienced transactions within the past 180 days. Over the last half-year time period, Parker Drilling Company (NYSE:PKD) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the returns exhibited by the aforementioned tactics, everyday investors must always monitor hedge fund and insider trading activity, and Parker Drilling Company (NYSE:PKD) shareholders fit into this picture quite nicely.
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.