Hedge Funds Aren’t Crazy About MDU Resources Group Inc (MDU) Anymore

What’s a smart MDU Resources Group Inc (NYSE:MDU) investor to do?

To the average investor, there are many indicators market participants can use to monitor their holdings. A couple of the best are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can outperform the broader indices by a healthy amount (see just how much).

Just as necessary, bullish insider trading activity is another way to look at the stock market universe. Just as you’d expect, there are a variety of motivations for a bullish insider to drop shares of his or her company, but only one, very obvious reason why they would behave bullishly. Various empirical studies have demonstrated the valuable potential of this strategy if investors understand what to do (learn more here).

Furthermore, it’s important to analyze the newest info about MDU Resources Group Inc (NYSE:MDU).

MDU Resources Group Inc (NYSE:MDU)

How are hedge funds trading MDU Resources Group Inc (NYSE:MDU)?

At Q2’s end, a total of 9 of the hedge funds we track were bullish in this stock, a change of -10% from the previous quarter. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their holdings significantly.

According to our 13F database, Phill Gross and Robert Atchinson’s Adage Capital Management had the most valuable position in MDU Resources Group Inc (NYSE:MDU), worth close to $44 million, comprising 0.1% of its total 13F portfolio. The second largest stake is held by Ken Griffin of Citadel Investment Group, with a $12 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Scott Scher & Michael Prober’s Clovis Capital Management, Jim Simons’s Renaissance Technologies and Cliff Asness’s AQR Capital Management.

Due to the fact MDU Resources Group Inc (NYSE:MDU) has faced declining interest from the top-tier hedge fund industry, it’s easy to see that there lies a certain “tier” of hedgies who sold off their full holdings at the end of the second quarter. It’s worth mentioning that Israel Englander’s Millennium Management sold off the largest investment of the “upper crust” of funds we watch, totaling about $21.8 million in stock, and Steven Cohen of SAC Capital Advisors was right behind this move, as the fund dumped about $0.6 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest was cut by 1 funds at the end of the second quarter.

Insider trading activity in MDU Resources Group Inc (NYSE:MDU)

Bullish insider trading is particularly usable when the company in question has experienced transactions within the past 180 days. Over the last six-month time period, MDU Resources Group Inc (NYSE:MDU) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll go over the relationship between both of these indicators in other stocks similar to MDU Resources Group Inc (NYSE:MDU). These stocks are RPC, Inc. (NYSE:RES), Core Laboratories N.V. (NYSE:CLB), Dril-Quip, Inc. (NYSE:DRQ), Superior Energy Services, Inc. (NYSE:SPN), and Oil States International, Inc. (NYSE:OIS). This group of stocks are the members of the oil & gas equipment & services industry and their market caps match MDU’s market cap.