In the 21st century investor’s toolkit, there are tons of gauges investors can use to watch their holdings. A couple of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top money managers can outclass the S&P 500 by a very impressive margin (see just how much).
Just as necessary, bullish insider trading activity is a second way to analyze the marketplace. Obviously, there are plenty of stimuli for a bullish insider to sell shares of his or her company, but only one, very obvious reason why they would behave bullishly. Several empirical studies have demonstrated the market-beating potential of this method if investors understand what to do (learn more here).
What’s more, let’s study the newest info about IDEX Corporation (NYSE:IEX).
How have hedgies been trading IDEX Corporation (NYSE:IEX)?
In preparation for the third quarter, a total of 16 of the hedge funds we track were bullish in this stock, a change of 60% from the previous quarter. With the smart money’s capital changing hands, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes significantly.
When using filings from the hedgies we track, GAMCO Investors, managed by Mario Gabelli, holds the largest position in IDEX Corporation (NYSE:IEX). GAMCO Investors has a $73 million position in the stock, comprising 0.5% of its 13F portfolio. Sitting at the No. 2 spot is Ariel Investments, managed by John W. Rogers, which held a $70.6 million position; 1.2% of its 13F portfolio is allocated to the company. Remaining hedge funds that are bullish include Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC, Chuck Royce’s Royce & Associates and Ian Simm’s Impax Asset Management.
Consequently, particular hedge funds were leading the bulls’ herd. GAMCO Investors, managed by Mario Gabelli, created the most valuable position in IDEX Corporation (NYSE:IEX). GAMCO Investors had 73 million invested in the company at the end of the quarter. John W. Rogers’s Ariel Investments also initiated a $70.6 million position during the quarter. The other funds with brand new IEX positions are Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC, Chuck Royce’s Royce & Associates, and Ian Simm’s Impax Asset Management.
What do corporate executives and insiders think about IDEX Corporation (NYSE:IEX)?
Legal insider trading, particularly when it’s bullish, is at its handiest when the company in question has experienced transactions within the past half-year. Over the last 180-day time period, IDEX Corporation (NYSE:IEX) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to IDEX Corporation (NYSE:IEX). These stocks are Xylem Inc (NYSE:XYL), Dresser-Rand Group Inc. (NYSE:DRC), Nordson Corporation (NASDAQ:NDSN), Avery Dennison Corp (NYSE:AVY), and Colfax Corp (NYSE:CFX). This group of stocks are in the diversified machinery industry and their market caps match IEX’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Xylem Inc (NYSE:XYL)||22||0||0|
|Dresser-Rand Group Inc. (NYSE:DRC)||24||0||0|
|Nordson Corporation (NASDAQ:NDSN)||10||0||0|
|Avery Dennison Corp (NYSE:AVY)||18||0||0|
|Colfax Corp (NYSE:CFX)||30||0||0|
Using the returns demonstrated by our tactics, average investors must always watch hedge fund and insider trading activity, and IDEX Corporation (NYSE:IEX) shareholders fit into this picture quite nicely.