Should You Buy Primoris Services Corp (NASDAQ:PRIM)?

Is Primoris Services Corp (NASDAQ:PRIM) going to take off soon? Investors who are in the know are turning bullish. The number of bullish hedge fund bets rose by 6 lately.

Primoris Services Corp (NASDAQ:PRIM)

In the financial world, there are dozens of metrics market participants can use to track the equity markets. Some of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best fund managers can trounce the S&P 500 by a superb amount (see just how much).

Equally as beneficial, positive insider trading activity is another way to parse down the marketplace. Obviously, there are lots of stimuli for an insider to cut shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Various empirical studies have demonstrated the market-beating potential of this method if shareholders understand where to look (learn more here).

Keeping this in mind, let’s take a glance at the recent action regarding Primoris Services Corp (NASDAQ:PRIM).

How have hedgies been trading Primoris Services Corp (NASDAQ:PRIM)?

At year’s end, a total of 15 of the hedge funds we track were bullish in this stock, a change of 67% from the third quarter. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were upping their stakes meaningfully.

Of the funds we track, ACK Asset Management, managed by “Richard S. Meisenberg, holds the most valuable position in Primoris Services Corp (NASDAQ:PRIM). ACK Asset Management has a $15 million position in the stock, comprising 7.4% of its 13F portfolio. The second largest stake is held by TIG Advisors, managed by Carl Tiedemann and Michael Tiedemann, which held a $3 million position; 3.7% of its 13F portfolio is allocated to the company. Some other hedgies that are bullish include Andrew R. Midler’s Savitr Capital, Cliff Asness’s AQR Capital Management and Joel Greenblatt’s Gotham Asset Management.

As aggregate interest increased, some big names were breaking ground themselves. Savitr Capital, managed by Andrew R. Midler, initiated the most outsized position in Primoris Services Corp (NASDAQ:PRIM). Savitr Capital had 3 million invested in the company at the end of the quarter. William Harnisch’s Peconic Partners LLC also initiated a $1 million position during the quarter. The other funds with brand new PRIM positions are Philip Hempleman’s Ardsley Partners, Richard Driehaus’s Driehaus Capital, and John Overdeck and David Siegel’s Two Sigma Advisors.

How are insiders trading Primoris Services Corp (NASDAQ:PRIM)?

Insider trading activity, especially when it’s bullish, is at its handiest when the primary stock in question has seen transactions within the past six months. Over the last half-year time frame, Primoris Services Corp (NASDAQ:PRIM) has experienced 4 unique insiders buying, and 5 insider sales (see the details of insider trades here).

With the results demonstrated by the aforementioned research, retail investors should always keep an eye on hedge fund and insider trading sentiment, and Primoris Services Corp (NASDAQ:PRIM) applies perfectly to this mantra.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.