Is Spectrum Brands Holdings, Inc. (NYSE:SPB) a good investment?
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Equally as necessary, positive insider trading activity is another way to analyze the stock market universe. There are many motivations for an upper level exec to get rid of shares of his or her company, but only one, very clear reason why they would behave bullishly. Several academic studies have demonstrated the market-beating potential of this strategy if investors understand where to look (learn more here).
What’s more, let’s analyze the latest info for Spectrum Brands Holdings, Inc. (NYSE:SPB).
How are hedge funds trading Spectrum Brands Holdings, Inc. (NYSE:SPB)?
At the end of the second quarter, a total of 18 of the hedge funds we track held long positions in this stock, a change of -14% from the previous quarter. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes considerably.
When using filings from the hedgies we track, Phil Falcone’s Harbinger had the largest position in Spectrum Brands Holdings, Inc. (NYSE:SPB), worth close to $1.7569 billion, comprising 69.7% of its total 13F portfolio. The second largest stake is held by Christian Leone of Luxor Capital Group, with a $130.4 million position; the fund has 3.5% of its 13F portfolio invested in the stock. Some other hedge funds that hold long positions include Daniel Lewis’s Orange Capital, Alexander Mitchell’s Scopus Asset Management and Jim Simons’s Renaissance Technologies.
As Spectrum Brands Holdings, Inc. (NYSE:SPB) has faced declining interest from the entirety of the hedge funds we track, logic holds that there is a sect of money managers that elected to cut their full holdings last quarter. At the top of the heap, Mark Kingdon’s Kingdon Capital sold off the largest investment of the 450+ funds we watch, totaling close to $3.3 million in stock. Malcolm Fairbairn’s fund, Ascend Capital, also said goodbye to its stock, about $1.2 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 3 funds last quarter.
How have insiders been trading Spectrum Brands Holdings, Inc. (NYSE:SPB)?
Legal insider trading, particularly when it’s bullish, is best served when the company in focus has experienced transactions within the past half-year. Over the latest 180-day time frame, Spectrum Brands Holdings, Inc. (NYSE:SPB) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Spectrum Brands Holdings, Inc. (NYSE:SPB). These stocks are Universal Electronics Inc (NASDAQ:UEIC), Panasonic Corporation (ADR) (NYSE:PC), Sony Corporation (ADR) (NYSE:SNE), Fabrinet (NYSE:FN), and Harman International Industries Inc./DE/ (NYSE:HAR). This group of stocks are the members of the electronic equipment industry and their market caps resemble SPB’s market cap.