Is Targa Resources Partners LP (NYSE:NGLS) the right investment to pursue these days? Money managers are becoming less hopeful. The number of long hedge fund bets shrunk by 1 recently.
In the financial world, there are many gauges market participants can use to analyze publicly traded companies. A couple of the most useful are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite fund managers can outperform the broader indices by a very impressive amount (see just how much).
Equally as beneficial, positive insider trading sentiment is a second way to parse down the marketplace. Obviously, there are a variety of stimuli for an executive to cut shares of his or her company, but only one, very clear reason why they would buy. Many empirical studies have demonstrated the market-beating potential of this method if shareholders know where to look (learn more here).
Now, it’s important to take a glance at the key action surrounding Targa Resources Partners LP (NYSE:NGLS).
How have hedgies been trading Targa Resources Partners LP (NYSE:NGLS)?
At the end of the first quarter, a total of 7 of the hedge funds we track were bullish in this stock, a change of -13% from the first quarter. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes considerably.
According to our comprehensive database, Richard Driehaus’s Driehaus Capital had the most valuable position in Targa Resources Partners LP (NYSE:NGLS), worth close to $13.5 million, accounting for 0.6% of its total 13F portfolio. The second largest stake is held by Matthew Hulsizer of PEAK6 Capital Management, with a $5.7 million call position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Jim Simons’s Renaissance Technologies, Andrew R. Midler’s Savitr Capital and Ken Griffin’s Citadel Investment Group.
Since Targa Resources Partners LP (NYSE:NGLS) has witnessed a declination in interest from the entirety of the hedge funds we track, it’s safe to say that there were a few fund managers that elected to cut their positions entirely last quarter. Intriguingly, Dmitry Balyasny’s Balyasny Asset Management cut the biggest stake of the “upper crust” of funds we key on, valued at about $5.5 million in stock.. Matthew Hulsizer’s fund, PEAK6 Capital Management, also sold off its stock, about $0.5 million worth. These transactions are important to note, as total hedge fund interest dropped by 1 funds last quarter.
Insider trading activity in Targa Resources Partners LP (NYSE:NGLS)
Insider trading activity, especially when it’s bullish, is at its handiest when the company in focus has seen transactions within the past 180 days. Over the last six-month time frame, Targa Resources Partners LP (NYSE:NGLS) has experienced 2 unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Targa Resources Partners LP (NYSE:NGLS). These stocks are Genesis Energy, L.P. (NYSE:GEL), NuStar Energy L.P. (NYSE:NS), Spectra Energy Partners, LP (NYSE:SEP), Cheniere Energy Partners LP (NYSEAMEX:CQP), and Regency Energy Partners LP (NYSE:RGP). This group of stocks are in the oil & gas pipelines industry and their market caps match NGLS’s market cap.