Is Harmony Gold Mining Co. (ADR) (NYSE:HMY) a good investment?
At the moment, there are dozens of gauges shareholders can use to analyze stocks. Some of the most useful 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 investment managers can beat the S&P 500 by a very impressive margin (see just how much).
Just as crucial, optimistic insider trading sentiment is a second way to look at the marketplace. As the old adage goes: there are a number of stimuli for a corporate insider to get rid of shares of his or her company, but just one, very simple reason why they would buy. Various empirical studies have demonstrated the useful potential of this method if shareholders understand what to do (learn more here).
What’s more, let’s examine the recent info surrounding Harmony Gold Mining Co. (ADR) (NYSE:HMY).
What have hedge funds been doing with Harmony Gold Mining Co. (ADR) (NYSE:HMY)?
At Q2’s end, a total of 14 of the hedge funds we track were long in this stock, a change of 0% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their holdings considerably.
When using filings from the hedgies we track, First Eagle Investment Management, managed by Matt McLennan, holds the most valuable position in Harmony Gold Mining Co. (ADR) (NYSE:HMY). First Eagle Investment Management has a $72.4 million position in the stock, comprising 0.2% of its 13F portfolio. Coming in second is Renaissance Technologies, managed by Jim Simons, which held a $8.1 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other hedge funds that are bullish include John Overdeck and David Siegel’s Two Sigma Advisors, Cliff Asness’s AQR Capital Management and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners.
Due to the fact Harmony Gold Mining Co. (ADR) (NYSE:HMY) has faced bearish sentiment from the smart money’s best and brightest, logic holds that there exists a select few hedge funds that slashed their entire stakes last quarter. At the top of the heap, Mike Vranos’s Ellington sold off the biggest investment of the 450+ funds we track, comprising close to $1 million in stock. Steven Cohen’s fund, SAC Capital Advisors, also said goodbye to its stock, about $0.3 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
What have insiders been doing with Harmony Gold Mining Co. (ADR) (NYSE:HMY)?
Legal insider trading, particularly when it’s bullish, is best served when the company we’re looking at has seen transactions within the past six months. Over the latest half-year time period, Harmony Gold Mining Co. (ADR) (NYSE:HMY) 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 Harmony Gold Mining Co. (ADR) (NYSE:HMY). These stocks are Allied Nevada Gold Corp. (NYSEAMEX:ANV), AuRico Gold Inc (USA) (NYSE:AUQ), Royal Gold, Inc USA) (NASDAQ:RGLD), New Gold Inc. (USA) (NYSEAMEX:NGD), and IAMGOLD Corporation (USA) (NYSE:IAG). This group of stocks belong to the gold industry and their market caps resemble HMY’s market cap.