To the average investor, there are a multitude of metrics shareholders can use to analyze Mr. Market. A pair of the best are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top investment managers can outclass the broader indices by a healthy amount (see just how much).
Just as key, bullish insider trading activity is a second way to look at the stock market universe. Just as you’d expect, there are many incentives for an executive to sell shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of academic studies have demonstrated the useful potential of this strategy if piggybackers know where to look (learn more here).
Thus, let’s examine the newest info surrounding Gentherm Inc (NASDAQ:THRM).
How have hedgies been trading Gentherm Inc (NASDAQ:THRM)?
At the end of the second quarter, a total of 12 of the hedge funds we track were long in this stock, a change of 20% from the previous quarter. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their stakes considerably.
According to our 13F database, Sagard Capital Partners Management Corp, managed by Dan Friedberg, holds the largest position in Gentherm Inc (NASDAQ:THRM). Sagard Capital Partners Management Corp has a $16.2 million position in the stock, comprising 5.7% of its 13F portfolio. Coming in second is Invicta Capital Management, managed by Gregory A. Weaver, which held a $14.9 million position; the fund has 6.2% of its 13F portfolio invested in the stock. Some other peers that hold long positions include Phil Frohlich’s Prescott Group Capital Management, Peter S. Park’s Park West Asset Management and Andy Redleaf’s Whitebox Advisors.
As aggregate interest spiked, certain money managers were leading the bulls’ herd. Sagard Capital Partners Management Corp, managed by Dan Friedberg, initiated the largest position in Gentherm Inc (NASDAQ:THRM). Sagard Capital Partners Management Corp had 16.2 million invested in the company at the end of the quarter. Gregory A. Weaver’s Invicta Capital Management also made a $14.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Phil Frohlich’s Prescott Group Capital Management, Peter S. Park’s Park West Asset Management, and Andy Redleaf’s Whitebox Advisors.
What do corporate executives and insiders think about Gentherm Inc (NASDAQ:THRM)?
Bullish insider trading is particularly usable when the company in focus has seen transactions within the past six months. Over the latest six-month time frame, Gentherm Inc (NASDAQ:THRM) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Gentherm Inc (NASDAQ:THRM). These stocks are Meritor Inc (NYSE:MTOR), Standard Motor Products, Inc. (NYSE:SMP), Federal-Mogul Corporation (NASDAQ:FDML), Superior Industries International Inc. (NYSE:SUP), and Remy International Inc (NASDAQ:REMY). This group of stocks are in the auto parts industry and their market caps match THRM’s market cap.