Is Rock-Tenn Company (NYSE:RKT) a buy?
In today’s marketplace, there are dozens of metrics market participants can use to monitor stocks. A duo of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite hedge fund managers can trounce the broader indices by a very impressive amount (see just how much).
Equally as necessary, bullish insider trading activity is a second way to look at the stock market universe. Obviously, there are many stimuli for an upper level exec to get rid of shares of his or her company, but only one, very simple reason why they would behave bullishly. Various empirical studies have demonstrated the impressive potential of this method if “monkeys” understand where to look (learn more here).
What’s more, it’s important to study the latest info for Rock-Tenn Company (NYSE:RKT).
Hedge fund activity in Rock-Tenn Company (NYSE:RKT)
At the end of the second quarter, a total of 37 of the hedge funds we track were bullish in this stock, a change of 12% from the first quarter. With hedgies’ sentiment swirling, there exists a few noteworthy hedge fund managers who were boosting their stakes considerably.
Out of the hedge funds we follow, Ken Heebner’s Capital Growth Management had the largest position in Rock-Tenn Company (NYSE:RKT), worth close to $98.6 million, accounting for 2.6% of its total 13F portfolio. Sitting at the No. 2 spot is John Paulson of Paulson & Co, with a $59.9 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Remaining hedge funds that are bullish include Craig C. Albert’s Sheffield Asset Management, Thomas E. Claugus’s GMT Capital and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.
As aggregate interest spiked, specific money managers have been driving this bullishness. Capital Growth Management, managed by Ken Heebner, initiated the biggest position in Rock-Tenn Company (NYSE:RKT). Capital Growth Management had 98.6 million invested in the company at the end of the quarter. John Paulson’s Paulson & Co also initiated a $59.9 million position during the quarter. The other funds with new positions in the stock are Craig C. Albert’s Sheffield Asset Management, Thomas E. Claugus’s GMT Capital, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.
How have insiders been trading Rock-Tenn Company (NYSE:RKT)?
Insider buying made by high-level executives is best served when the company in question has experienced transactions within the past half-year. Over the latest half-year time frame, Rock-Tenn Company (NYSE:RKT) has experienced zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Rock-Tenn Company (NYSE:RKT). These stocks are Tupperware Brands Corporation (NYSE:TUP), Sealed Air Corp (NYSE:SEE), Crown Holdings, Inc. (NYSE:CCK), Ball Corporation (NYSE:BLL), and MeadWestvaco Corp. (NYSE:MWV). This group of stocks are the members of the packaging & containers industry and their market caps are closest to RKT’s market cap.