To the average investor, there are many methods shareholders can use to watch publicly traded companies. Two of the most useful are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best money managers can outpace the market by a significant margin (see just how much).
Equally as necessary, positive insider trading sentiment is a second way to look at the financial markets. Just as you’d expect, there are plenty of stimuli for a corporate insider to drop shares of his or her company, but just one, very clear reason why they would buy. Many academic studies have demonstrated the useful potential of this tactic if shareholders understand what to do (learn more here).
Furthermore, it’s important to examine the latest info about Northern Trust Corporation (NASDAQ:NTRS).
Hedge fund activity in Northern Trust Corporation (NASDAQ:NTRS)
At the end of the second quarter, a total of 29 of the hedge funds we track held long positions in this stock, a change of 26% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their holdings considerably.
According to our 13F database, David Blood and Al Gore’s Generation Investment Management had the most valuable position in Northern Trust Corporation (NASDAQ:NTRS), worth close to $118.5 million, accounting for 2.3% of its total 13F portfolio. Coming in second is Mario Gabelli of GAMCO Investors, with a $98.8 million position; 0.6% of its 13F portfolio is allocated to the company. Some other institutional investors that are bullish include John W. Rogers’s Ariel Investments, Clint Carlson’s Carlson Capital and Donald Yacktman’s Yacktman Asset Management.
As aggregate interest spiked, certain money managers were leading the bulls’ herd. Generation Investment Management, managed by David Blood and Al Gore, created the biggest position in Northern Trust Corporation (NASDAQ:NTRS). Generation Investment Management had 118.5 million invested in the company at the end of the quarter. Mario Gabelli’s GAMCO Investors also initiated a $98.8 million position during the quarter. The following funds were also among the new NTRS investors: John W. Rogers’s Ariel Investments, Clint Carlson’s Carlson Capital, and Donald Yacktman’s Yacktman Asset Management.
How are insiders trading Northern Trust Corporation (NASDAQ:NTRS)?
Insider buying made by high-level executives is particularly usable when the primary stock in question has seen transactions within the past half-year. Over the last 180-day time frame, Northern Trust Corporation (NASDAQ:NTRS) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Northern Trust Corporation (NASDAQ:NTRS). These stocks are Carlyle Group LP (NASDAQ:CG), Oaktree Capital Group LLC (NYSE:OAK), Principal Financial Group Inc (NYSE:PFG), Ameriprise Financial, Inc. (NYSE:AMP), and Invesco Ltd. (NYSE:IVZ). This group of stocks belong to the asset management industry and their market caps are similar to NTRS’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Carlyle Group LP (NASDAQ:CG)||11||0||0|
|Oaktree Capital Group LLC (NYSE:OAK)||15||0||0|
|Principal Financial Group Inc (NYSE:PFG)||9||0||0|
|Ameriprise Financial, Inc. (NYSE:AMP)||23||0||0|
|Invesco Ltd. (NYSE:IVZ)||30||0||0|
Using the results shown by the previously mentioned analyses, average investors must always track hedge fund and insider trading activity, and Northern Trust Corporation (NASDAQ:NTRS) shareholders fit into this picture quite nicely.