Is Parkway Properties Inc (PKY) Going to Burn These Hedge Funds?

Is Parkway Properties Inc (NYSE:PKY) undervalued? Prominent investors are taking a bullish view. The number of long hedge fund bets rose by 7 lately.

In today’s marketplace, there are plenty of gauges shareholders can use to watch stocks. A pair of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite hedge fund managers can outclass the market by a solid margin (see just how much).

Equally as important, bullish insider trading sentiment is a second way to break down the investments you’re interested in. Obviously, there are a variety of motivations for a corporate insider to cut shares of his or her company, but just one, very clear reason why they would behave bullishly. Several academic studies have demonstrated the impressive potential of this method if “monkeys” understand what to do (learn more here).

With all of this in mind, we’re going to take a look at the latest action surrounding Parkway Properties Inc (NYSE:PKY).

What have hedge funds been doing with Parkway Properties Inc (NYSE:PKY)?

At year’s end, a total of 8 of the hedge funds we track held long positions in this stock, a change of 700% from the previous quarter. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their stakes substantially.

When looking at the hedgies we track, Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, holds the biggest position in Parkway Properties Inc (NYSE:PKY). Arrowstreet Capital has a $4.5 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second largest stake is held by Jim Simons of Renaissance Technologies, with a $1.4 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedgies that hold long positions include John Overdeck and David Siegel’s Two Sigma Advisors, Israel Englander’s Millennium Management and Cliff Asness’s AQR Capital Management.

Parkway Properties Inc (NYSE:PKY)As aggregate interest increased, key money managers were leading the bulls’ herd. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, created the most outsized position in Parkway Properties Inc (NYSE:PKY). Arrowstreet Capital had 4.5 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $1.4 million investment in the stock during the quarter. The following funds were also among the new PKY investors: John Overdeck and David Siegel’s Two Sigma Advisors, Israel Englander’s Millennium Management, and D. E. Shaw’s D E Shaw.

How are insiders trading Parkway Properties Inc (NYSE:PKY)?

Bullish insider trading is best served when the company in question has experienced transactions within the past half-year. Over the last 180-day time period, Parkway Properties Inc (NYSE:PKY) has seen 3 unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Parkway Properties Inc (NYSE:PKY). These stocks are Select Income REIT (NYSE:SIR), Government Properties Income Trust (NYSE:GOV), Franklin Street Properties Corp. (NYSEAMEX:FSP), Hudson Pacific Properties Inc (NYSE:HPP), and American Assets Trust, Inc (NYSE:AAT). All of these stocks are in the reit – office industry and their market caps are similar to PKY’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Select Income REIT (NYSE:SIR) 11 0 0
Government Properties Income Trust (NYSE:GOV) 4 0 1
Franklin Street Properties Corp. (NYSEAMEX:FSP) 2 1 0
Hudson Pacific Properties Inc (NYSE:HPP) 5 0 1
American Assets Trust, Inc (NYSE:AAT) 7 1 0

With the returns exhibited by the aforementioned studies, retail investors should always monitor hedge fund and insider trading sentiment, and Parkway Properties Inc (NYSE:PKY) is an important part of this process.

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