Is Ternium S.A. (ADR) (NYSE:TX) a good investment?
At the moment, there are many gauges market participants can use to track Mr. Market. Two of the best are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best investment managers can outclass the broader indices by a very impressive margin (see just how much).
Equally as crucial, bullish insider trading activity is a second way to look at the marketplace. Obviously, there are a number of reasons for an insider to downsize shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Various academic studies have demonstrated the valuable potential of this method if “monkeys” understand what to do (learn more here).
Now that that’s out of the way, it’s important to discuss the recent info about Ternium S.A. (ADR) (NYSE:TX).
What does the smart money think about Ternium S.A. (ADR) (NYSE:TX)?
In preparation for the third quarter, a total of 5 of the hedge funds we track were long in this stock, a change of -44% from one quarter earlier. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were upping their stakes significantly.
According to our 13F database, D. E. Shaw’s D E Shaw had the most valuable position in Ternium S.A. (ADR) (NYSE:TX), worth close to $4.4 million, comprising less than 0.1%% of its total 13F portfolio. On D E Shaw’s heels is John Overdeck and David Siegel of Two Sigma Advisors, with a $2.7 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Glenn Russell Dubin’s Highbridge Capital Management, Michael Hintze’s CQS Cayman LP and Matthew Hulsizer’s PEAK6 Capital Management.
Judging by the fact that Ternium S.A. (ADR) (NYSE:TX) has witnessed declining interest from the top-tier hedge fund industry, it’s safe to say that there exists a select few hedgies who were dropping their full holdings last quarter. At the top of the heap, Ken Griffin’s Citadel Investment Group sold off the largest stake of the 450+ funds we track, comprising close to $1.1 million in stock. Mike Vranos’s fund, Ellington, also dumped its stock, about $1 million worth. These moves are interesting, as aggregate hedge fund interest was cut by 4 funds last quarter.
Insider trading activity in Ternium S.A. (ADR) (NYSE:TX)
Bullish insider trading is particularly usable when the primary stock in question has experienced transactions within the past 180 days. Over the latest 180-day time period, Ternium S.A. (ADR) (NYSE:TX) has experienced zero unique insiders buying, 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 Ternium S.A. (ADR) (NYSE:TX). These stocks are Grupo Simec S.A.B. de C.V. (ADR) (NYSEAMEX:SIM), Companhia Siderurgica Nacional (ADR) (NYSE:SID), Mechel OAO (ADR) (NYSE:MTL), United States Steel Corporation (NYSE:X), and Steel Dynamics, Inc. (NASDAQ:STLD). This group of stocks are in the steel & iron industry and their market caps resemble TX’s market cap.
