In the financial world, there are plenty of gauges shareholders can use to monitor stocks. A couple of the most useful are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top money managers can outpace the broader indices by a very impressive amount (see just how much).
Just as integral, bullish insider trading sentiment is a second way to break down the investments you’re interested in. There are a number of reasons for a bullish insider to cut shares of his or her company, but only one, very clear reason why they would initiate a purchase. Various empirical studies have demonstrated the impressive potential of this strategy if investors know where to look (learn more here).
Keeping this in mind, let’s take a gander at the latest action regarding Modine Manufacturing Co. (NYSE:MOD).
What does the smart money think about Modine Manufacturing Co. (NYSE:MOD)?
In preparation for this quarter, a total of 8 of the hedge funds we track were long in this stock, a change of 33% from the first quarter. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were boosting their stakes substantially.
When looking at the hedgies we track, Mario Gabelli’s GAMCO Investors had the biggest position in Modine Manufacturing Co. (NYSE:MOD), worth close to $19.7 million, accounting for 0.1% of its total 13F portfolio. Coming in second is AQR Capital Management, managed by Cliff Asness, which held a $2.8 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other hedge funds that hold long positions include Joel Greenblatt’s Gotham Asset Management, John Overdeck and David Siegel’s Two Sigma Advisors and D. E. Shaw’s D E Shaw.
As industrywide interest jumped, key hedge funds were leading the bulls’ herd. D E Shaw, managed by D. E. Shaw, created the biggest position in Modine Manufacturing Co. (NYSE:MOD). D E Shaw had 0.5 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $0.5 million investment in the stock during the quarter.
What have insiders been doing with Modine Manufacturing Co. (NYSE:MOD)?
Insider purchases made by high-level executives is particularly usable when the company in question has seen transactions within the past 180 days. Over the latest half-year time frame, Modine Manufacturing Co. (NYSE:MOD) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Modine Manufacturing Co. (NYSE:MOD). These stocks are Remy International Inc (NASDAQ:REMY), Fuel Systems Solutions, Inc. (NASDAQ:FSYS), Gentherm Inc (NASDAQ:THRM), Superior Industries International Inc. (NYSE:SUP), and Meritor Inc (NYSE:MTOR). This group of stocks are in the auto parts industry and their market caps resemble MOD’s market cap.
