Should Dresser-Rand Group Inc. (NYSE:DRC) investors track the following data?
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Just as crucial, positive insider trading activity is a second way to look at the marketplace. Obviously, there are plenty of reasons for a corporate insider to sell shares of his or her company, but just one, very obvious reason why they would buy. Plenty of academic studies have demonstrated the market-beating potential of this method if shareholders know where to look (learn more here).
Furthermore, it’s important to examine the recent info about Dresser-Rand Group Inc. (NYSE:DRC).
How have hedgies been trading Dresser-Rand Group Inc. (NYSE:DRC)?
At Q2’s end, a total of 24 of the hedge funds we track were long in this stock, a change of 50% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their stakes considerably.
As one would understandably expect, certain bigger names were leading the bulls’ herd. Iridian Asset Management, managed by David Cohen and Harold Levy, created the largest position in Dresser-Rand Group Inc. (NYSE:DRC). Iridian Asset Management had 237.9 million invested in the company at the end of the quarter. Matt McLennan’s First Eagle Investment Management also initiated a $53.6 million position during the quarter. The other funds with new positions in the stock are John A. Levin’s Levin Capital Strategies, Phill Gross and Robert Atchinson’s Adage Capital Management, and Jim Simons’s Renaissance Technologies.
How are insiders trading Dresser-Rand Group Inc. (NYSE:DRC)?
Insider buying made by high-level executives is best served when the company in focus has seen transactions within the past six months. Over the latest half-year time period, Dresser-Rand Group Inc. (NYSE:DRC) has seen 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 Dresser-Rand Group Inc. (NYSE:DRC). These stocks are Nordson Corporation (NASDAQ:NDSN), Xylem Inc (NYSE:XYL), Avery Dennison Corp (NYSE:AVY), Colfax Corp (NYSE:CFX), and IDEX Corporation (NYSE:IEX). All of these stocks are in the diversified machinery industry and their market caps match DRC’s market cap.
