Raytheon Company (RTN): Insiders Aren’t Crazy About It But Hedge Funds Love It

Raytheon Company (NYSE:RTN) investors: listen up.

In the financial world, there are plenty of methods shareholders can use to track stocks. Two of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top fund managers can trounce the S&P 500 by a very impressive amount (see just how much).

Just as crucial, bullish insider trading sentiment is another way to analyze the marketplace. Just as you’d expect, there are lots of stimuli for an executive to get rid of shares of his or her company, but only one, very simple reason why they would buy. Many empirical studies have demonstrated the valuable potential of this strategy if investors understand what to do (learn more here).

Furthermore, it’s important to discuss the latest info for Raytheon Company (NYSE:RTN).

Raytheon Company (NYSE:RTN)

How have hedgies been trading Raytheon Company (NYSE:RTN)?

In preparation for the third quarter, a total of 25 of the hedge funds we track held long positions in this stock, a change of 4% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes meaningfully.

According to our 13F database, Phill Gross and Robert Atchinson’s Adage Capital Management had the biggest position in Raytheon Company (NYSE:RTN), worth close to $153.5 million, comprising 0.5% of its total 13F portfolio. On Adage Capital Management’s heels is AQR Capital Management, managed by Cliff Asness, which held a $76.1 million position; 0.3% of its 13F portfolio is allocated to the company. Some other hedge funds that hold long positions include Louis Navellier’s Navellier & Associates, David Harding’s Winton Capital Management and James Melcher’s Balestra.

As one would understandably expect, specific money managers have been driving this bullishness. Adage Capital Management, managed by Phill Gross and Robert Atchinson, established the largest position in Raytheon Company (NYSE:RTN). Adage Capital Management had 153.5 million invested in the company at the end of the quarter. Cliff Asness’s AQR Capital Management also made a $76.1 million investment in the stock during the quarter. The other funds with new positions in the stock are Louis Navellier’s Navellier & Associates, David Harding’s Winton Capital Management, and James Melcher’s Balestra.

How have insiders been trading Raytheon Company (NYSE:RTN)?

Insider buying is most useful when the company in question has seen transactions within the past half-year. Over the last 180-day time frame, Raytheon Company (NYSE:RTN) has experienced zero unique insiders purchasing, and 12 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 Raytheon Company (NYSE:RTN). These stocks are Gencorp Inc (NYSE:GY), AerCap Holdings N.V. (NYSE:AER), Textron Inc. (NYSE:TXT), and Northrop Grumman Corporation (NYSE:NOC). All of these stocks are in the aerospace/defense – major diversified industry and their market caps match RTN’s market cap.