United Technologies Corporation (NYSE:UTX) investors should be aware of a decrease in enthusiasm from smart money lately.
To the average investor, there are plenty of gauges shareholders can use to monitor publicly traded companies. Some of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top hedge fun
Equally as integral, positive insider trading activity is a second way to break down the marketplace. Obviously, there are plenty of stimuli for an executive to sell shares of his or her company, but just one, very clear reason why they would buy. Various academic studies have demonstrated the impressive potential of this strategy if piggybackers know what to do (learn more here).
Now, we’re going to take a peek at the key action encompassing United Technologies Corporation (NYSE:UTX).
What have hedge funds been doing with United Technologies Corporation (NYSE:UTX)?
At the end of the first quarter, a total of 43 of the hedge funds we track were long in this stock, a change of -10% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their stakes substantially.
When looking at the hedgies we track, Fisher Asset Management, managed by Ken Fisher, holds the biggest position in United Technologies Corporation (NYSE:UTX). Fisher Asset Management has a $517.7 million position in the stock, comprising 1.4% of its 13F portfolio. On Fisher Asset Management’s heels is Diamond Hill Capital, managed by Ric Dillon, which held a $280.5 million position; the fund has 2.9% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include Ken Griffin’s Citadel Investment Group, Bill Miller’s Legg Mason Capital Management and Ricky Sandler’s Eminence Capital.
Seeing as United Technologies Corporation (NYSE:UTX) has witnessed bearish sentiment from the aggregate hedge fund industry, logic holds that there is a sect of hedge funds that elected to cut their full holdings heading into Q2. Interestingly, Lee Ainslie’s Maverick Capital cut the biggest investment of the 450+ funds we track, comprising close to $148.6 million in stock.. Thomas Steyer’s fund, Farallon Capital, also dumped its stock, about $71.9 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 5 funds heading into Q2.
How are insiders trading United Technologies Corporation (NYSE:UTX)?
Insider trading activity, especially when it’s bullish, is best served when the company in focus has seen transactions within the past half-year. Over the last six-month time frame, United Technologies Corporation (NYSE:UTX) has experienced zero unique insiders purchasing, and 13 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to United Technologies Corporation (NYSE:UTX). These stocks are TransDigm Group Incorporated (NYSE:TDG), Rockwell Collins, Inc. (NYSE:COL), General Dynamics Corporation (NYSE:GD), Lockheed Martin Corporation (NYSE:LMT), and The Boeing Company (NYSE:BA). This group of stocks are the members of the aerospace/defense products & services industry and their market caps match UTX’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| TransDigm Group Incorporated (NYSE:TDG) | 39 | 1 | 5 |
| Rockwell Collins, Inc. (NYSE:COL) | 19 | 0 | 12 |
| General Dynamics Corporation (NYSE:GD) | 48 | 1 | 11 |
| Lockheed Martin Corporation (NYSE:LMT) | 32 | 0 | 6 |
| The Boeing Company (NYSE:BA) | 56 | 1 | 7 |
With the returns exhibited by the aforementioned research, retail investors must always monitor hedge fund and insider trading sentiment, and United Technologies Corporation (NYSE:UTX) shareholders fit into this picture quite nicely.
