Coeur d’Alene Mines Corporation (NYSE:CDE) shareholders have witnessed a decrease in enthusiasm from smart money of late.
To the average investor, there are plenty of gauges market participants can use to track the equity markets. A couple of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top fund managers can trounce the S&P 500 by a very impressive margin (see just how much).
Just as important, bullish insider trading sentiment is another way to break down the investments you’re interested in. There are lots of incentives for a corporate insider to sell shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the useful potential of this tactic if investors know where to look (learn more here).
Consequently, we’re going to take a peek at the latest action regarding Coeur d’Alene Mines Corporation (NYSE:CDE).
How are hedge funds trading Coeur d’Alene Mines Corporation (NYSE:CDE)?
At the end of the first quarter, a total of 12 of the hedge funds we track were long in this stock, a change of -14% from one quarter earlier. With hedgies’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes significantly.
When looking at the hedgies we track, Sun Valley Gold, managed by Peter Franklin Palmedo, holds the largest position in Coeur d’Alene Mines Corporation (NYSE:CDE). Sun Valley Gold has a $24.1 million position in the stock, comprising 0.9% of its 13F portfolio. Sitting at the No. 2 spot is Dreman Value Management, managed by David Dreman, which held a $23.6 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Some other hedge funds that hold long positions include Eric Sprott’s Sprott Asset Management, Glenn Russell Dubin’s Highbridge Capital Management and John Overdeck and David Siegel’s Two Sigma Advisors.
Because Coeur d’Alene Mines Corporation (NYSE:CDE) has faced declining sentiment from the entirety of the hedge funds we track, logic holds that there was a specific group of fund managers who were dropping their full holdings in Q1. Intriguingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital said goodbye to the largest position of the 450+ funds we track, totaling an estimated $11 million in stock., and Joel Greenblatt of Gotham Asset Management was right behind this move, as the fund dropped about $3.1 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 2 funds in Q1.
What have insiders been doing with Coeur d’Alene Mines Corporation (NYSE:CDE)?
Insider trading activity, especially when it’s bullish, is most useful when the company in question has seen transactions within the past half-year. Over the latest 180-day time period, Coeur d’Alene Mines Corporation (NYSE:CDE) has experienced 1 unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Coeur d’Alene Mines Corporation (NYSE:CDE). These stocks are Silvercorp Metals Inc. (USA) (NYSE:SVM), Silver Standard Resources Inc. (USA) (NASDAQ:SSRI), Hecla Mining Company (NYSE:HL), Pan American Silver Corp. (USA) (NASDAQ:PAAS), and First Majestic Silver Corp (NYSE:AG). All of these stocks are in the silver industry and their market caps resemble CDE’s market cap.