Is Global Power Equipment Group Inc (NASDAQ:GLPW) a healthy stock for your portfolio? The number of bullish hedge fund bets stayed the same which is a slightly negative development in our experience.
In the financial world, there are dozens of metrics shareholders can use to watch their holdings. A pair 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 top picks of the best fund managers can beat the market by a very impressive amount (see just how much).
Equally as key, bullish insider trading activity is another way to break down the world of equities. There are many motivations for a corporate insider to cut shares of his or her company, but just one, very clear reason why they would buy. Plenty of academic studies have demonstrated the useful potential of this method if “monkeys” understand where to look (learn more here).
Consequently, we’re going to take a look at the key action regarding Global Power Equipment Group Inc (NASDAQ:GLPW).
What have hedge funds been doing with Global Power Equipment Group Inc (NASDAQ:GLPW)?
At the end of the fourth quarter, a total of 8 of the hedge funds we track were long in this stock, a change of 0% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their holdings considerably.
When looking at the hedgies we track, Chuck Royce’s Royce & Associates had the biggest position in Global Power Equipment Group Inc (NASDAQ:GLPW), worth close to $32.8 million, comprising 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is Wynnefield Capital, managed by Nelson Obus, which held a $8.6 million position; 3% of its 13F portfolio is allocated to the stock. Remaining peers that are bullish include Thomas Ellis and Todd Hammer’s North Run Capital, Phill Gross and Robert Atchinson’s Adage Capital Management and Brian Taylor’s Pine River Capital Management.
Seeing as Global Power Equipment Group Inc (NASDAQ:GLPW) has faced bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there is a sect of hedgies who were dropping their full holdings last quarter. Interestingly, Joel Greenblatt’s Gotham Asset Management dumped the largest position of the “upper crust” of funds we monitor, worth about $1.8 million in stock. These transactions are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What do corporate executives and insiders think about Global Power Equipment Group Inc (NASDAQ:GLPW)?
Insider buying is at its handiest when the company in question has experienced transactions within the past six months. Over the last six-month time frame, Global Power Equipment Group Inc (NASDAQ:GLPW) has seen 1 unique insiders buying, 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 Global Power Equipment Group Inc (NASDAQ:GLPW). These stocks are Ampco-Pittsburgh Corp. (NYSE:AP), Kadant Inc. (NYSE:KAI), Marine Products Corp. (NYSE:MPX), and Twin Disc, Incorporated (NASDAQ:TWIN). This group of stocks are the members of the diversified machinery industry and their market caps match GLPW’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Ampco-Pittsburgh Corp. (NYSE:AP)||5||0||0|
|Kadant Inc. (NYSE:KAI)||7||0||2|
|Marine Products Corp. (NYSE:MPX)||1||0||0|
|Twin Disc, Incorporated (NASDAQ:TWIN)||5||1||0|
With the results exhibited by the aforementioned studies, everyday investors must always watch hedge fund and insider trading sentiment, and Global Power Equipment Group Inc (NASDAQ:GLPW) shareholders fit into this picture quite nicely.