is USG Corporation (NYSE:USG) a sell?
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Equally as necessary, bullish insider trading activity is a second way to analyze the financial markets. Just as you’d expect, there are lots of stimuli for an upper level exec to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this strategy if you understand what to do (learn more here).
Now that that’s out of the way, it’s important to examine the newest info about USG Corporation (NYSE:USG).
How are hedge funds trading USG Corporation (NYSE:USG)?
At the end of the second quarter, a total of 24 of the hedge funds we track were long in this stock, a change of -8% from one quarter earlier. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their holdings meaningfully.
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Judging by the fact that USG Corporation (NYSE:USG) has witnessed bearish sentiment from upper-tier hedge fund managers, it’s safe to say that there was a specific group of fund managers that slashed their positions entirely last quarter. Interestingly, Jim Simons’s Renaissance Technologies dumped the largest stake of all the hedgies we track, valued at an estimated $22.2 million in stock, and Philip Hempleman of Ardsley Partners was right behind this move, as the fund said goodbye to about $9.1 million worth. These bearish behaviors are important to note, as total hedge fund interest fell by 2 funds last quarter.
How have insiders been trading USG Corporation (NYSE:USG)?
Insider buying made by high-level executives is most useful when the primary stock in question has seen transactions within the past 180 days. Over the last six-month time period, USG Corporation (NYSE:USG) has experienced zero unique insiders buying, and 5 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 USG Corporation (NYSE:USG). These stocks are Masco Corporation (NYSE:MAS), Vulcan Materials Company (NYSE:VMC), Owens Corning (NYSE:OC), Martin Marietta Materials, Inc. (NYSE:MLM), and Armstrong World Industries, Inc. (NYSE:AWI). This group of stocks belong to the general building materials industry and their market caps resemble USG’s market cap.
