Should Northeast Utilities System (NYSE:NU) investors track the following data?
To the average investor, there are dozens of methods shareholders can use to monitor the equity markets. A duo of the most useful are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite fund managers can outperform the S&P 500 by a superb amount (see just how much).
Just as useful, positive insider trading activity is another way to analyze the world of equities. Obviously, there are a number of stimuli for an insider to downsize shares of his or her company, but only one, very clear reason why they would buy. Various academic studies have demonstrated the market-beating potential of this tactic if piggybackers know where to look (learn more here).
Thus, it’s important to examine the recent info for Northeast Utilities System (NYSE:NU).
How have hedgies been trading Northeast Utilities System (NYSE:NU)?
At the end of the second quarter, a total of 14 of the hedge funds we track held long positions in this stock, a change of 27% from the previous quarter. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their holdings meaningfully.
When using filings from the hedgies we track, D E Shaw, managed by D. E. Shaw, holds the biggest position in Northeast Utilities System (NYSE:NU). D E Shaw has a $73.4 million position in the stock, comprising 0.1% of its 13F portfolio. On D E Shaw’s heels is Israel Englander of Millennium Management, with a $54.2 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Remaining hedge funds that are bullish include Mario Gabelli’s GAMCO Investors, Ken Griffin’s Citadel Investment Group and Phill Gross and Robert Atchinson’s Adage Capital Management.
Consequently, certain bigger names were leading the bulls’ herd. D E Shaw, managed by D. E. Shaw, created the largest position in Northeast Utilities System (NYSE:NU). D E Shaw had 73.4 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $54.2 million investment in the stock during the quarter. The other funds with brand new NU positions are Mario Gabelli’s GAMCO Investors, Ken Griffin’s Citadel Investment Group, and Phill Gross and Robert Atchinson’s Adage Capital Management.
How have insiders been trading Northeast Utilities System (NYSE:NU)?
Insider buying made by high-level executives is most useful when the primary stock in question has experienced transactions within the past six months. Over the latest half-year time frame, Northeast Utilities System (NYSE:NU) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Northeast Utilities System (NYSE:NU). These stocks are Ameren Corp (NYSE:AEE), NRG Energy Inc (NYSE:NRG), NiSource Inc. (NYSE:NI), CenterPoint Energy, Inc. (NYSE:CNP), and Public Service Enterprise Group Inc. (NYSE:PEG). All of these stocks are in the diversified utilities industry and their market caps are closest to NU’s market cap.