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Equally as necessary, positive insider trading sentiment is another way to analyze the financial markets. Just as you’d expect, there are lots of motivations for an upper level exec to sell shares of his or her company, but just one, very clear reason why they would buy. Various academic studies have demonstrated the market-beating potential of this strategy if “monkeys” know where to look (learn more here).
Thus, let’s analyze the recent info for REGAL-BELOIT CORPORATION (NYSE:RBC).
Hedge fund activity in REGAL-BELOIT CORPORATION (NYSE:RBC)
Heading into Q3, a total of 16 of the hedge funds we track held long positions in this stock, a change of 23% from the first quarter. With hedge funds’ sentiment swirling, there exists a few key hedge fund managers who were increasing their holdings significantly.
Out of the hedge funds we follow, Ken Fisher’s Fisher Asset Management had the largest position in REGAL-BELOIT CORPORATION (NYSE:RBC), worth close to $40.2 million, comprising 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is Impax Asset Management, managed by Ian Simm, which held a $35.6 million position; 4.3% of its 13F portfolio is allocated to the stock. Remaining hedge funds that are bullish include Chuck Royce’s Royce & Associates, Glenn Russell Dubin’s Highbridge Capital Management and Cliff Asness’s AQR Capital Management.
As aggregate interest spiked, certain bigger names were breaking ground themselves. Fisher Asset Management, managed by Ken Fisher, initiated the most outsized position in REGAL-BELOIT CORPORATION (NYSE:RBC). Fisher Asset Management had 40.2 million invested in the company at the end of the quarter. Ian Simm’s Impax Asset Management also made a $35.6 million investment in the stock during the quarter. The other funds with brand new RBC positions are Chuck Royce’s Royce & Associates, Glenn Russell Dubin’s Highbridge Capital Management, and Cliff Asness’s AQR Capital Management.
How are insiders trading REGAL-BELOIT CORPORATION (NYSE:RBC)?
Bullish insider trading is most useful when the primary stock in question has seen transactions within the past six months. Over the latest half-year time period, REGAL-BELOIT CORPORATION (NYSE:RBC) 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 REGAL-BELOIT CORPORATION (NYSE:RBC). These stocks are General Cable Corporation (NYSE:BGC), EnerSys (NYSE:ENS), Belden Inc. (NYSE:BDC), Woodward Inc (NASDAQ:WWD), and A. O. Smith Corporation (NYSE:AOS). This group of stocks are in the industrial electrical equipment industry and their market caps are closest to RBC’s market cap.
