To the untrained eye, there are many indicators for American Capital Agency Corp. (NASDAQ:AGNC) traders to watch, but it’s useful to take note of a stock’s short interest. A couple pieces of data typically used are: (a) the percentage of a stock’s tradable shares that bears are currently shorting, in addition to (b) the change in short selling activity.
Augmented bearish shorting usually means what it implies: the market’s big players have grown less bullish on the stock. Short selling that’s too high, though, sometimes has a positive effect on share price, as the shorts may be forced to buy their positions.
Within our database, it is no secret that we pay attention to hedge funds’ interest, but it is eqaully as crucial to combine this data with aggregate short data. In certain instances, big time investors might indicate that they’re bearish on a stock, but it is not an SEC requirement. Nevertheless, many retail investors may want to stay away from heavily shorted stocks with above-average hedge fund support, while others may desire short-squeeze opportunities. For those searching for a proven piggybacking strategy, discover the details of our premium strategy.
Let’s take a gander at the recent info swirling around American Capital Agency Corp. (NASDAQ:AGNC).
It’s also important to take note of hedge fund sentiment via their 13F filings. Of the funds we track, Pine River Capital Management, managed by Brian Taylor, holds the largest position in American Capital Agency Corp. (NASDAQ:AGNC). Pine River Capital Management has a $231 million position in the stock, comprising 4.6% of its 13F portfolio. Coming in second is Renaissance Technologies, managed by Jim Simons, which held a $42.9 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining peers that are bullish include Brian Jackelow’s SAB Capital Management, Israel Englander’s Millennium Management and Phill Gross and Robert Atchinson’s Adage Capital Management.
Also, bullish insider trading is at its handiest when the company in focus has experienced transactions within the past six months. Over the last half-year time period, American Capital Agency Corp. (NASDAQ:AGNC) has experienced 1 unique insiders buying, and 2 insider sales (see the details of insider trades here).
Let’s also examine activity in other stocks similar to American Capital Agency Corp. (NASDAQ:AGNC). These stocks are Camden Property Trust (NYSE:CPT), UDR, Inc. (NYSE:UDR), Plum Creek Timber Co. Inc. (NYSE:PCL), Equity Residential (NYSE:EQR), and AvalonBay Communities Inc (NYSE:AVB). This group of stocks belong to the reit – residential industry and their market caps match AGNC’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Camden Property Trust (NYSE:CPT) | 11 | 0 | 14 |
| UDR, Inc. (NYSE:UDR) | 9 | 0 | 1 |
| Plum Creek Timber Co. Inc. (NYSE:PCL) | 12 | 0 | 12 |
| Equity Residential (NYSE:EQR) | 26 | 0 | 9 |
| AvalonBay Communities Inc (NYSE:AVB) | 21 | 1 | 3 |
These three indicators–short data, hedge fund info and insider trading history–are what every reader should account for. Though it is hard to find a usable strategy from short selling data, hedgie and insider sentiment provide lots of market beating opportunities if you know where to look.
