Is Carnival plc (ADR) (NYSE:CUK) the right pick for your portfolio? Investors who are in the know are becoming less hopeful. The number of bullish hedge fund bets were cut by 3 recently.
In today’s marketplace, there are tons of metrics investors can use to track stocks. A duo of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top fund managers can beat the S&P 500 by a very impressive margin (see just how much).
Just as key, bullish insider trading sentiment is another way to break down the investments you’re interested in. Just as you’d expect, there are a variety of stimuli for an upper level exec to sell shares of his or her company, but only one, very obvious reason why they would buy. Many academic studies have demonstrated the useful potential of this method if “monkeys” understand where to look (learn more here).
Keeping this in mind, it’s important to take a gander at the key action surrounding Carnival plc (ADR) (NYSE:CUK).
Hedge fund activity in Carnival plc (ADR) (NYSE:CUK)
Heading into 2013, a total of 4 of the hedge funds we track held long positions in this stock, a change of -43% from the previous quarter.
Seeing as Carnival plc (ADR) (NYSE:CUK) has witnessed declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there were a few funds who sold off their positions entirely at the end of the year. Interestingly, Cliff Asness’s AQR Capital Management dropped the largest investment of the “upper crust” of funds we monitor, worth about $8.5 million in stock.. Michael Hintze’s fund, CQS Cayman LP, also sold off its stock, about $3.8 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest was cut by 3 funds at the end of the year.
How have insiders been trading Carnival plc (ADR) (NYSE:CUK)?
Insider buying is particularly usable when the company we’re looking at has seen transactions within the past 180 days. Over the last half-year time frame, Carnival plc (ADR) (NYSE:CUK) has experienced zero unique insiders buying, and 11 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Carnival plc (ADR) (NYSE:CUK). These stocks are MakeMyTrip Limited (NASDAQ:MMYT), Orbitz Worldwide, Inc. (NYSE:OWW), Cedar Fair, L.P. (NYSE:FUN), Six Flags Entertainment Corp (NYSE:SIX), and Priceline.com Inc (NASDAQ:PCLN). This group of stocks are in the general entertainment industry and their market caps are similar to CUK’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| MakeMyTrip Limited (NASDAQ:MMYT) | 5 | 0 | 0 |
| Orbitz Worldwide, Inc. (NYSE:OWW) | 8 | 0 | 4 |
| Cedar Fair, L.P. (NYSE:FUN) | 10 | 2 | 0 |
| Six Flags Entertainment Corp (NYSE:SIX) | 30 | 1 | 5 |
| Priceline.com Inc (NASDAQ:PCLN) | 60 | 0 | 6 |
With the results shown by Insider Monkey’s research, everyday investors should always monitor hedge fund and insider trading activity, and Carnival plc (ADR) (NYSE:CUK) is no exception.
