Is it smart to be bullish on Leggett & Platt, Inc. (NYSE:LEG)?
In the 21st century investor’s toolkit, there are many gauges shareholders can use to track their holdings. A duo of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best money managers can outclass the broader indices by a very impressive amount (see just how much).
Equally as crucial, positive insider trading activity is another way to look at the world of equities. Just as you’d expect, there are lots of reasons for a corporate insider to downsize shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the market-beating potential of this tactic if you understand what to do (learn more here).
Keeping this in mind, it’s important to discuss the newest info surrounding Leggett & Platt, Inc. (NYSE:LEG).
How have hedgies been trading Leggett & Platt, Inc. (NYSE:LEG)?
At Q2’s end, a total of 15 of the hedge funds we track were long in this stock, a change of 25% from the previous quarter. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their stakes significantly.
According to our 13F database, Natixis Global Asset Management’s Harris Associates had the most valuable position in Leggett & Platt, Inc. (NYSE:LEG), worth close to $130.1 million, accounting for 0.3% of its total 13F portfolio. Sitting at the No. 2 spot is David Harding of Winton Capital Management, with a $50.1 million position; 0.6% of its 13F portfolio is allocated to the company. Other hedge funds that are bullish include Michael Lowenstein’s Kensico Capital, Israel Englander’s Millennium Management and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners.
Now, specific money managers have been driving this bullishness. Winton Capital Management, managed by David Harding, established the most outsized position in Leggett & Platt, Inc. (NYSE:LEG). Winton Capital Management had 50.1 million invested in the company at the end of the quarter. Michael Lowenstein’s Kensico Capital also initiated a $38.9 million position during the quarter. The other funds with new positions in the stock are Israel Englander’s Millennium Management, Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners, and Chuck Royce’s Royce & Associates.
How have insiders been trading Leggett & Platt, Inc. (NYSE:LEG)?
Insider buying is at its handiest when the company in focus has seen transactions within the past six months. Over the latest 180-day time period, Leggett & Platt, Inc. (NYSE:LEG) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Leggett & Platt, Inc. (NYSE:LEG). These stocks are La-Z-Boy Incorporated (NYSE:LZB), Select Comfort Corp. (NASDAQ:SCSS), Mattress Firm Holding Corp (NASDAQ:MFRM), Tempur-Pedic International Inc. (NYSE:TPX), and Fortune Brands Home & Security Inc (NYSE:FBHS). This group of stocks belong to the home furnishings & fixtures industry and their market caps are closest to LEG’s market cap.