Should Kindred Healthcare, Inc. (NYSE:KND) investors track the following data?
In the financial world, there are tons of indicators shareholders can use to monitor stocks. Some of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best money managers can outpace their index-focused peers by a superb margin (see just how much).
Just as key, optimistic insider trading sentiment is a second way to analyze the world of equities. Just as you’d expect, there are a variety of stimuli for a bullish insider to drop shares of his or her company, but only one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the impressive potential of this strategy if you understand what to do (learn more here).
What’s more, we’re going to examine the recent info about Kindred Healthcare, Inc. (NYSE:KND).
How are hedge funds trading Kindred Healthcare, Inc. (NYSE:KND)?
In preparation for the third quarter, a total of 16 of the hedge funds we track were long in this stock, a change of 33% from the previous quarter. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their holdings significantly.
According to our 13F database, Chuck Royce’s Royce & Associates had the largest position in Kindred Healthcare, Inc. (NYSE:KND), worth close to $11.4 million, comprising less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is David Dreman of Dreman Value Management, with a $10.9 million position; 0.3% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism include Nelson Obus’s Wynnefield Capital, Richard S. Meisenberg’s ACK Asset Management and Sean Cullinan’s Point State Capital.
With a general bullishness amongst the titans, specific money managers have been driving this bullishness. Royce & Associates, managed by Chuck Royce, created the most valuable position in Kindred Healthcare, Inc. (NYSE:KND). Royce & Associates had 11.4 million invested in the company at the end of the quarter. David Dreman’s Dreman Value Management also made a $10.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Nelson Obus’s Wynnefield Capital, Richard S. Meisenberg’s ACK Asset Management, and Sean Cullinan’s Point State Capital.
Insider trading activity in Kindred Healthcare, Inc. (NYSE:KND)
Legal insider trading, particularly when it’s bullish, is most useful when the company in question has experienced transactions within the past six months. Over the latest 180-day time period, Kindred Healthcare, Inc. (NYSE:KND) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Kindred Healthcare, Inc. (NYSE:KND). These stocks are Assisted Living Concepts, Inc. (NYSE:ALC), Five Star Quality Care, Inc. (NYSE:FVE), Capital Senior Living Corporation (NYSE:CSU), The Ensign Group, Inc. (NASDAQ:ENSG), and National HealthCare Corporation (NYSEAMEX:NHC). This group of stocks are the members of the long-term care facilities industry and their market caps resemble KND’s market cap.