Should Delek US Holdings, Inc. (NYSE:DK) investors track the following data?
In the financial world, there are tons of indicators market participants can use to monitor their holdings. Two of the most innovative 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 outperform the broader indices by a significant margin (see just how much).
Just as useful, positive insider trading activity is another way to look at the marketplace. There are many reasons for a corporate insider to cut shares of his or her company, but just one, very clear reason why they would behave bullishly. Many empirical studies have demonstrated the useful potential of this method if “monkeys” understand what to do (learn more here).
Now that that’s out of the way, we’re going to study the latest info surrounding Delek US Holdings, Inc. (NYSE:DK).
What does the smart money think about Delek US Holdings, Inc. (NYSE:DK)?
At the end of the second quarter, a total of 19 of the hedge funds we track held long positions in this stock, a change of -24% from the first quarter. With hedgies’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their stakes considerably.
When using filings from the hedgies we track, Jim Simons’s Renaissance Technologies had the most valuable position in Delek US Holdings, Inc. (NYSE:DK), worth close to $74.8 million, comprising 0.2% of its total 13F portfolio. Sitting at the No. 2 spot is Steadfast Capital Management, managed by Robert Pitts, which held a $38.3 million position; 1.1% of its 13F portfolio is allocated to the stock. Some other hedgies that are bullish include Israel Englander’s Millennium Management, D. E. Shaw’s D E Shaw and Glenn Russell Dubin’s Highbridge Capital Management.
As Delek US Holdings, Inc. (NYSE:DK) has witnessed bearish sentiment from upper-tier hedge fund managers, logic holds that there was a specific group of funds that elected to cut their positions entirely at the end of the second quarter. At the top of the heap, Andreas Halvorsen’s Viking Global sold off the biggest investment of the “upper crust” of funds we watch, comprising about $22.3 million in stock. Tom Sandell’s fund, Sandell Asset Management, also dropped its stock, about $15.3 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 6 funds at the end of the second quarter.
Insider trading activity in Delek US Holdings, Inc. (NYSE:DK)
Insider buying made by high-level executives is best served when the company in question has seen transactions within the past six months. Over the last six-month time frame, Delek US Holdings, Inc. (NYSE:DK) has seen zero unique insiders buying, 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 Delek US Holdings, Inc. (NYSE:DK). These stocks are Western Refining, Inc. (NYSE:WNR), BP Prudhoe Bay Royalty Trust (NYSE:BPT), World Fuel Services Corporation (NYSE:INT), Northern Tier Energy LP (NYSE:NTI), and Calumet Specialty Products Partners, L.P (NASDAQ:CLMT). This group of stocks are the members of the oil & gas refining & marketing industry and their market caps match DK’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Western Refining, Inc. (NYSE:WNR) | 25 | 0 | 0 |
| BP Prudhoe Bay Royalty Trust (NYSE:BPT) | 5 | 0 | 0 |
| World Fuel Services Corporation (NYSE:INT) | 10 | 0 | 0 |
| Northern Tier Energy LP (NYSE:NTI) | 7 | 0 | 0 |
| Calumet Specialty Products Partners, L.P (NASDAQ:CLMT) | 7 | 0 | 0 |
Using the returns demonstrated by Insider Monkey’s tactics, average investors should always pay attention to hedge fund and insider trading sentiment, and Delek US Holdings, Inc. (NYSE:DK) is an important part of this process.
