In the financial world, there are a multitude of methods investors can use to watch their holdings. Some of the most innovative 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 hedge fund managers can beat their index-focused peers by a solid amount (see just how much).
Just as crucial, bullish insider trading activity is a second way to analyze the investments you’re interested in. There are a number of stimuli for an executive to drop shares of his or her company, but only one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the valuable potential of this tactic if “monkeys” understand where to look (learn more here).
Keeping this in mind, it’s important to analyze the latest info for Dreamworks Animation Skg Inc (NASDAQ:DWA).
What does the smart money think about Dreamworks Animation Skg Inc (NASDAQ:DWA)?
In preparation for the third quarter, a total of 13 of the hedge funds we track were long in this stock, a change of 0% from the previous quarter. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were upping their holdings substantially.
Out of the hedge funds we follow, Horizon Asset Management, managed by Murray Stahl, holds the largest position in Dreamworks Animation Skg Inc (NASDAQ:DWA). Horizon Asset Management has a $300.4 million position in the stock, comprising 4.4% of its 13F portfolio. Sitting at the No. 2 spot is Michael Doheny of Freshford Capital Management, with a $23.2 million position; 3.4% of its 13F portfolio is allocated to the company. Other hedgies with similar optimism include Chuck Royce’s Royce & Associates, Christopher Lord’s Criterion Capital and Michael Doheny’s Freshford Capital Management.
Due to the fact Dreamworks Animation Skg Inc (NASDAQ:DWA) has faced declining interest from upper-tier hedge fund managers, logic holds that there was a specific group of hedgies who were dropping their full holdings last quarter. Interestingly, Spencer M. Waxman’s Shannon River Fund Management cut the biggest stake of the 450+ funds we track, totaling close to $7.3 million in stock, and Jim Simons of Renaissance Technologies was right behind this move, as the fund said goodbye to about $5.9 million worth. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Insider trading activity in Dreamworks Animation Skg Inc (NASDAQ:DWA)
Insider buying made by high-level executives is most useful when the company in focus has experienced transactions within the past 180 days. Over the latest half-year time period, Dreamworks Animation Skg Inc (NASDAQ:DWA) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Dreamworks Animation Skg Inc (NASDAQ:DWA). These stocks are Carmike Cinemas, Inc. (NASDAQ:CKEC), RealD (NYSE:RLD), Cinemark Holdings, Inc. (NYSE:CNK), Lions Gate Entertainment Corp. (USA) (NYSE:LGF), and Regal Entertainment Group (NYSE:RGC). This group of stocks are the members of the movie production, theaters industry and their market caps are closest to DWA’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Carmike Cinemas, Inc. (NASDAQ:CKEC) | 14 | 0 | 0 |
| RealD (NYSE:RLD) | 12 | 0 | 0 |
| Cinemark Holdings, Inc. (NYSE:CNK) | 23 | 0 | 0 |
| Lions Gate Entertainment Corp. (USA) (NYSE:LGF) | 26 | 0 | 0 |
| Regal Entertainment Group (NYSE:RGC) | 13 | 0 | 0 |
Using the returns demonstrated by our analyses, regular investors should always keep one eye on hedge fund and insider trading sentiment, and Dreamworks Animation Skg Inc (NASDAQ:DWA) is no exception.
