American Railcar Industries, Inc. (NASDAQ:ARII) was in 15 hedge funds’ portfolio at the end of the first quarter of 2013. ARII investors should be aware of a decrease in support from the world’s most elite money managers in recent months. There were 19 hedge funds in our database with ARII holdings at the end of the previous quarter.
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Just as integral, bullish insider trading sentiment is another way to parse down the stock market universe. Obviously, there are lots of motivations for a corporate insider to get rid of shares of his or her company, but only one, very clear reason why they would initiate a purchase. Plenty of academic studies have demonstrated the valuable potential of this method if piggybackers know what to do (learn more here).
Now, let’s take a gander at the recent action regarding American Railcar Industries, Inc. (NASDAQ:ARII).
Hedge fund activity in American Railcar Industries, Inc. (NASDAQ:ARII)
At Q1’s end, a total of 15 of the hedge funds we track were bullish in this stock, a change of -21% from the first quarter. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their stakes meaningfully.
Since American Railcar Industries, Inc. (NASDAQ:ARII) has witnessed falling interest from the smart money, it’s safe to say that there were a few hedgies that slashed their full holdings at the end of the first quarter. It’s worth mentioning that Paul Reeder and Edward Shapiro’s PAR Capital Management cut the largest investment of the “upper crust” of funds we track, comprising close to $8.1 million in stock.. Alexander Mitchell’s fund, Scopus Asset Management, also sold off its stock, about $7.1 million worth. These moves are important to note, as aggregate hedge fund interest fell by 4 funds at the end of the first quarter.
What have insiders been doing with American Railcar Industries, Inc. (NASDAQ:ARII)?
Insider purchases made by high-level executives is most useful when the company we’re looking at has seen transactions within the past six months. Over the latest six-month time period, American Railcar Industries, Inc. (NASDAQ:ARII) has seen zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to American Railcar Industries, Inc. (NASDAQ:ARII). These stocks are Westinghouse Air Brake Technologies Corp (NYSE:WAB), FreightCar America, Inc. (NASDAQ:RAIL), Trinity Industries, Inc. (NYSE:TRN), Guangshen Railway Co. Ltd (ADR) (NYSE:GSH), and Greenbrier Companies Inc (NYSE:GBX). All of these stocks are in the railroads industry and their market caps match ARII’s market cap.
