Is Steelcase Inc. (NYSE:SCS) a buy right now? Money managers are getting more bullish. The number of long hedge fund bets advanced by 5 in recent months.
To the average investor, there are plenty of indicators shareholders can use to analyze publicly traded companies. A couple of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can outpace the S&P 500 by a significant margin (see just how much).
Just as key, bullish insider trading activity is another way to break down the world of equities. There are a number of motivations for an upper level exec to cut shares of his or her company, but only one, very simple reason why they would buy. Various academic studies have demonstrated the useful potential of this method if investors understand where to look (learn more here).
Keeping this in mind, it’s important to take a look at the key action encompassing Steelcase Inc. (NYSE:SCS).
What does the smart money think about Steelcase Inc. (NYSE:SCS)?
Heading into 2013, a total of 19 of the hedge funds we track were bullish in this stock, a change of 36% from the previous quarter. With hedgies’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were increasing their stakes substantially.
Of the funds we track, Cliff Asness’s AQR Capital Management had the biggest position in Steelcase Inc. (NYSE:SCS), worth close to $9 million, accounting for 0% of its total 13F portfolio. On AQR Capital Management’s heels is Israel Englander of Millennium Management, with a $6 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining hedge funds that are bullish include Jeffrey Vinik’s Vinik Asset Management, D. E. Shaw’s D E Shaw and David Costen Haley’s HBK Investments.
With a general bullishness amongst the heavyweights, some big names were leading the bulls’ herd. Vinik Asset Management, managed by Jeffrey Vinik, created the most valuable position in Steelcase Inc. (NYSE:SCS). Vinik Asset Management had 4 million invested in the company at the end of the quarter. Drew Cupps’s Cupps Capital Management also made a $2 million investment in the stock during the quarter. The other funds with new positions in the stock are Robert B. Gillam’s McKinley Capital Management, Steven Cohen’s SAC Capital Advisors, and Phil Frohlich’s Prescott Group Capital Management.
How have insiders been trading Steelcase Inc. (NYSE:SCS)?
Insider trading activity, especially when it’s bullish, is particularly usable when the company we’re looking at has seen transactions within the past six months. Over the latest half-year time frame, Steelcase Inc. (NYSE:SCS) has experienced zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
With the results demonstrated by Insider Monkey’s tactics, everyday investors should always pay attention to hedge fund and insider trading sentiment, and Steelcase Inc. (NYSE:SCS) shareholders fit into this picture quite nicely.
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