Is AMC Networks Inc (NASDAQ:AMCX) a good investment?
In the financial world, there are tons of indicators market participants can use to watch Mr. Market. A duo of the most useful are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can beat the market by a significant amount (see just how much).
Just as necessary, bullish insider trading activity is a second way to look at the investments you’re interested in. Obviously, there are plenty of stimuli for a bullish insider to get rid of shares of his or her company, but just one, very obvious reason why they would buy. Several academic studies have demonstrated the valuable potential of this tactic if investors know where to look (learn more here).
Thus, we’re going to examine the newest info for AMC Networks Inc (NASDAQ:AMCX).
Hedge fund activity in AMC Networks Inc (NASDAQ:AMCX)
Heading into Q3, a total of 31 of the hedge funds we track were long in this stock, a change of 19% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were upping their stakes meaningfully.
According to our 13F database, John Paulson’s Paulson & Co had the largest position in AMC Networks Inc (NASDAQ:AMCX), worth close to $323.1 million, accounting for 2.3% of its total 13F portfolio. The second largest stake is held by GAMCO Investors, managed by Mario Gabelli, which held a $157.3 million position; 1% of its 13F portfolio is allocated to the stock. Other peers with similar optimism include Christopher Medlock James’s Partner Fund Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Phill Gross and Robert Atchinson’s Adage Capital Management.
As aggregate interest spiked, specific money managers have been driving this bullishness. Paulson & Co, managed by John Paulson, initiated the most valuable position in AMC Networks Inc (NASDAQ:AMCX). Paulson & Co had 323.1 million invested in the company at the end of the quarter. Mario Gabelli’s GAMCO Investors also made a $157.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Christopher MedlockáJames’s Partner Fund Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Phill Gross and Robert Atchinson’s Adage Capital Management.
How have insiders been trading AMC Networks Inc (NASDAQ:AMCX)?
Legal insider trading, particularly when it’s bullish, is at its handiest when the company in question has experienced transactions within the past six months. Over the last six-month time period, AMC Networks Inc (NASDAQ:AMCX) has seen zero unique insiders purchasing, and zero 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 AMC Networks Inc (NASDAQ:AMCX). These stocks are Shaw Communications Inc (USA) (NYSE:SJR), Charter Communications, Inc. (NASDAQ:CHTR), and Cablevision Systems Corporation (NYSE:CVC). This group of stocks are in the catv systems industry and their market caps are similar to AMCX’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Shaw Communications Inc (USA) (NYSE:SJR) | 6 | 0 | 0 |
| Charter Communications, Inc. (NASDAQ:CHTR) | 58 | 0 | 0 |
| Cablevision Systems Corporation (NYSE:CVC) | 31 | 0 | 0 |
Using the returns shown by Insider Monkey’s research, average investors should always keep one eye on hedge fund and insider trading activity, and AMC Networks Inc (NASDAQ:AMCX) is an important part of this process.
