Should investors be bullish on Pan American Silver Corp. (USA) (NASDAQ:PAAS)?
In today’s marketplace, there are many metrics investors can use to track publicly traded companies. Two of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best hedge fund managers can outperform their index-focused peers by a healthy margin (see just how much).
Equally as useful, bullish insider trading sentiment is another way to look at the stock market universe. Just as you’d expect, there are plenty of reasons for an insider to sell shares of his or her company, but only one, very obvious reason why they would buy. Various academic studies have demonstrated the impressive potential of this tactic if you know what to do (learn more here).
What’s more, let’s examine the recent info about Pan American Silver Corp. (USA) (NASDAQ:PAAS).
Hedge fund activity in Pan American Silver Corp. (USA) (NASDAQ:PAAS)
In preparation for the third quarter, a total of 16 of the hedge funds we track were bullish in this stock, a change of 23% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were boosting their holdings significantly.
When using filings from the hedgies we track, Royce & Associates, managed by Chuck Royce, holds the most valuable position in Pan American Silver Corp. (USA) (NASDAQ:PAAS). Royce & Associates has a $137 million position in the stock, comprising 0.4% of its 13F portfolio. The second largest stake is held by Clint Carlson of Carlson Capital, with a $39.6 million position; 0.5% of its 13F portfolio is allocated to the company. Remaining hedge funds that are bullish include Mark Travis’s Intrepid Capital Management, David Dreman’s Dreman Value Management and Jim Simons’s Renaissance Technologies.
As one would understandably expect, specific money managers have been driving this bullishness. Royce & Associates, managed by Chuck Royce, initiated the most valuable position in Pan American Silver Corp. (USA) (NASDAQ:PAAS). Royce & Associates had 137 million invested in the company at the end of the quarter. Clint Carlson’s Carlson Capital also made a $39.6 million investment in the stock during the quarter. The other funds with new positions in the stock are Mark Travis’s Intrepid Capital Management, David Dreman’s Dreman Value Management, and Jim Simons’s Renaissance Technologies.
Insider trading activity in Pan American Silver Corp. (USA) (NASDAQ:PAAS)
Bullish insider trading is particularly usable when the company we’re looking at has seen transactions within the past half-year. Over the latest 180-day time frame, Pan American Silver Corp. (USA) (NASDAQ:PAAS) has experienced 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 Pan American Silver Corp. (USA) (NASDAQ:PAAS). These stocks are Silvercorp Metals Inc. (USA) (NYSE:SVM), Silver Standard Resources Inc. (USA) (NASDAQ:SSRI), Hecla Mining Company (NYSE:HL), First Majestic Silver Corp (NYSE:AG), and Coeur d’Alene Mines Corporation (NYSE:CDE). This group of stocks are in the silver industry and their market caps are closest to PAAS’s market cap.