Companhia Siderurgica Nacional (ADR) (NYSE:SID): Hedge Funds Aren’t Crazy About It, Insider Sentiment Unchanged

Is Companhia Siderurgica Nacional (ADR) (NYSE:SID) a good investment?

In today’s marketplace, there are many metrics investors can use to analyze their holdings. A couple of the best are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top hedge fund managers can outpace the S&P 500 by a very impressive amount (see just how much).

Just as necessary, positive insider trading sentiment is a second way to analyze the marketplace. There are many reasons for a bullish insider to downsize shares of his or her company, but only one, very obvious reason why they would buy. Various academic studies have demonstrated the valuable potential of this tactic if “monkeys” understand where to look (learn more here).

Furthermore, we’re going to analyze the newest info surrounding Companhia Siderurgica Nacional (ADR) (NYSE:SID).

How have hedgies been trading Companhia Siderurgica Nacional (ADR) (NYSE:SID)?

In preparation for the third quarter, a total of 8 of the hedge funds we track were bullish in this stock, a change of -20% from the first quarter. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes considerably.

According to our 13F database, Jim Simons’s Renaissance Technologies had the most valuable position in Companhia Siderurgica Nacional (ADR) (NYSE:SID), worth close to $14.1 million, comprising less than 0.1%% of its total 13F portfolio. On Renaissance Technologies’s heels is AlphaBet Management, managed by Jason Adler, which held a $2.2 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Bart Baum’s Ionic Capital Management, Matthew Tewksbury’s Stevens Capital Management and Ken Griffin’s Citadel Investment Group.

Since Companhia Siderurgica Nacional (ADR) (NYSE:SID) has experienced dropping sentiment from the top-tier hedge fund industry, logic holds that there is a sect of money managers who sold off their full holdings heading into Q2. It’s worth mentioning that Steven Cohen’s SAC Capital Advisors sold off the biggest stake of the “upper crust” of funds we watch, worth about $0.3 million in stock, and David Costen Haley of Hbk Investments was right behind this move, as the fund cut about $0.3 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 2 funds heading into Q2.

What do corporate executives and insiders think about Companhia Siderurgica Nacional (ADR) (NYSE:SID)?

Insider buying made by high-level executives is at its handiest when the company in focus has experienced transactions within the past six months. Over the last half-year time frame, Companhia Siderurgica Nacional (ADR) (NYSE:SID) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also review the relationship between both of these indicators in other stocks similar to Companhia Siderurgica Nacional (ADR) (NYSE:SID). These stocks are United States Steel Corporation (NYSE:X), Nucor Corporation (NYSE:NUE), Gerdau SA (ADR) (NYSE:GGB), Steel Dynamics, Inc. (NASDAQ:STLD), and Ternium S.A. (ADR) (NYSE:TX). This group of stocks are in the steel & iron industry and their market caps are closest to SID’s market cap.