Should IAMGOLD Corporation (USA) (NYSE:IAG) investors follow the following data?
In today’s marketplace, there are dozens of metrics investors can use to track their holdings. A couple of the most useful are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can outperform the broader indices by a significant amount (see just how much).
Equally as useful, bullish insider trading sentiment is another way to look at the financial markets. Just as you’d expect, there are many stimuli for a bullish insider to get rid of shares of his or her company, but only one, very clear reason why they would buy. Several academic studies have demonstrated the useful potential of this strategy if you know what to do (learn more here).
Furthermore, it’s important to analyze the recent info surrounding IAMGOLD Corporation (USA) (NYSE:IAG).
How have hedgies been trading IAMGOLD Corporation (USA) (NYSE:IAG)?
In preparation for the third quarter, a total of 20 of the hedge funds we track were bullish in this stock, a change of 0% from the first quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were upping their holdings considerably.
When using filings from the hedgies we track, Sun Valley Gold, managed by Peter Franklin Palmedo, holds the largest position in IAMGOLD Corporation (USA) (NYSE:IAG). Sun Valley Gold has a $26.2 million position in the stock, comprising 3.5% of its 13F portfolio. On Sun Valley Gold’s heels is Paulson & Co, managed by John Paulson, which held a $16.7 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other peers that hold long positions include Jim Simons’s Renaissance Technologies, Matt McLennan’s First Eagle Investment Management and Chuck Royce’s Royce & Associates.
Due to the fact IAMGOLD Corporation (USA) (NYSE:IAG) has experienced declining interest from the smart money’s best and brightest, logic holds that there is a sect of fund managers that decided to sell off their positions entirely heading into Q2. Intriguingly, Charles de Vaulx’s International Value Advisers sold off the biggest stake of the “upper crust” of funds we track, worth close to $11.6 million in stock, and Jonathon Jacobson of Highfields Capital Management was right behind this move, as the fund sold off about $7.2 million worth. These transactions are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
How have insiders been trading IAMGOLD Corporation (USA) (NYSE:IAG)?
Legal insider trading, particularly when it’s bullish, is particularly usable when the primary stock in question has experienced transactions within the past half-year. Over the latest six-month time period, IAMGOLD Corporation (USA) (NYSE:IAG) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to IAMGOLD Corporation (USA) (NYSE:IAG). These stocks are Allied Nevada Gold Corp. (NYSEAMEX:ANV), AuRico Gold Inc (USA) (NYSE:AUQ), Royal Gold, Inc USA) (NASDAQ:RGLD), New Gold Inc. (USA) (NYSEAMEX:NGD), and Harmony Gold Mining Co. (ADR) (NYSE:HMY). This group of stocks are in the gold industry and their market caps resemble IAG’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Allied Nevada Gold Corp. (NYSEAMEX:ANV) | 15 | 0 | 0 |
| AuRico Gold Inc (USA) (NYSE:AUQ) | 12 | 0 | 0 |
| Royal Gold, Inc USA) (NASDAQ:RGLD) | 21 | 0 | 0 |
| New Gold Inc. (USA) (NYSEAMEX:NGD) | 14 | 0 | 0 |
| Harmony Gold Mining Co. (ADR) (NYSE:HMY) | 14 | 0 | 0 |
Using the results shown by the previously mentioned strategies, average investors must always keep one eye on hedge fund and insider trading activity, and IAMGOLD Corporation (USA) (NYSE:IAG) is an important part of this process.
