Is Cemex SAB de CV (ADR) (NYSE:CX) a buy right now? Money managers are getting more optimistic. The number of bullish hedge fund bets moved up by 6 in recent months.
In today’s marketplace, there are tons of metrics investors can use to analyze publicly traded companies. A duo of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top fund managers can outperform the market by a superb amount (see just how much).
Just as key, positive insider trading activity is another way to parse down the stock market universe. As the old adage goes: there are plenty of reasons for a corporate insider to downsize shares of his or her company, but only one, very simple reason why they would buy. Many academic studies have demonstrated the valuable potential of this tactic if piggybackers understand where to look (learn more here).
Consequently, we’re going to take a peek at the key action surrounding Cemex SAB de CV (ADR) (NYSE:CX).
Hedge fund activity in Cemex SAB de CV (ADR) (NYSE:CX)
At the end of the first quarter, a total of 35 of the hedge funds we track were bullish in this stock, a change of 21% from the previous quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings significantly.
When looking at the hedgies we track, Mason Hawkins’s Southeastern Asset Management had the biggest position in Cemex SAB de CV (ADR) (NYSE:CX), worth close to $631.7 million, comprising 2.8% of its total 13F portfolio. The second largest stake is held by Viking Global, managed by Andreas Halvorsen, which held a $542.3 million position; the fund has 3.3% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include John Lykouretzos’s Hoplite Capital Management, Malcolm Fairbairn’s Ascend Capital and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.
As one would reasonably expect, some big names were leading the bulls’ herd. Viking Global, managed by Andreas Halvorsen, created the most outsized position in Cemex SAB de CV (ADR) (NYSE:CX). Viking Global had 542.3 million invested in the company at the end of the quarter. Rob Citrone’s Discovery Capital Management also initiated a $83.5 million position during the quarter. The following funds were also among the new CX investors: Eric Chen’s Antipodean Advisors, and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital.
How are insiders trading Cemex SAB de CV (ADR) (NYSE:CX)?
Bullish insider trading is most useful when the company we’re looking at has experienced transactions within the past six months. Over the last half-year time frame, Cemex SAB de CV (ADR) (NYSE:CX) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Cemex SAB de CV (ADR) (NYSE:CX). These stocks are Texas Industries, Inc. (NYSE:TXI), Eagle Materials, Inc. (NYSE:EXP) and CRH PLC (ADR) (NYSE:CRH). This group of stocks are in the cement industry and their market caps are similar to CX’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Texas Industries, Inc. (NYSE:TXI)||16||2||3|
|Eagle Materials, Inc. (NYSE:EXP)||30||1||13|
|CRH PLC (ADR) (NYSE:CRH)||4||0||0|
With the results demonstrated by Insider Monkey’s research, everyday investors should always monitor hedge fund and insider trading activity, and Cemex SAB de CV (ADR) (NYSE:CX) is an important part of this process.