Is Elizabeth Arden, Inc. (NASDAQ:RDEN) a good investment?
In the financial world, there are tons of indicators investors can use to watch the equity markets. A couple of the most useful are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best money managers can outclass the broader indices by a very impressive amount (see just how much).
Equally as useful, positive insider trading activity is another way to look at the world of equities. There are a number of stimuli for a bullish insider to downsize shares of his or her company, but just one, very clear reason why they would initiate a purchase. Various empirical studies have demonstrated the valuable potential of this method if shareholders understand where to look (learn more here).
What’s more, we’re going to study the recent info about Elizabeth Arden, Inc. (NASDAQ:RDEN).
Hedge fund activity in Elizabeth Arden, Inc. (NASDAQ:RDEN)
At Q2’s end, a total of 7 of the hedge funds we track held long positions in this stock, a change of -22% from the previous quarter. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their holdings significantly.
When using filings from the hedgies we track, Fisher Asset Management, managed by Ken Fisher, holds the biggest position in Elizabeth Arden, Inc. (NASDAQ:RDEN). Fisher Asset Management has a $49.9 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is Phill Gross and Robert Atchinson of Adage Capital Management, with a $4.1 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining peers with similar optimism include Richard Driehaus’s Driehaus Capital, Mario Gabelli’s GAMCO Investors and Cliff Asness’s AQR Capital Management.
Due to the fact Elizabeth Arden, Inc. (NASDAQ:RDEN) has witnessed a fall in interest from the smart money’s best and brightest, it’s easy to see that there was a specific group of funds who were dropping their entire stakes in Q1. It’s worth mentioning that Ken Griffin’s Citadel Investment Group dumped the largest position of the 450+ funds we key on, valued at close to $0.8 million in stock. Paul Tudor Jones’s fund, Tudor Investment Corp, also sold off its stock, about $0.3 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 2 funds in Q1.
How are insiders trading Elizabeth Arden, Inc. (NASDAQ:RDEN)?
Bullish insider trading is most useful when the company in focus has experienced transactions within the past 180 days. Over the latest 180-day time period, Elizabeth Arden, Inc. (NASDAQ:RDEN) has experienced 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 Elizabeth Arden, Inc. (NASDAQ:RDEN). These stocks are Energizer Holdings, Inc. (NYSE:ENR), Blyth, Inc. (NYSE:BTH), Nu Skin Enterprises, Inc. (NYSE:NUS), Inter Parfums, Inc. (NASDAQ:IPAR), and Revlon Inc (NYSE:REV). This group of stocks are in the personal products industry and their market caps are similar to RDEN’s market cap.