Is it time to buy more of ExOne Co (NASDAQ:XONE)? The hedge fund and insider trading data surrounding this stock is some of the best I’ve seen.
To the average investor, there are plenty of methods investors can use to analyze stocks. A duo of the most useful 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 best hedge fund managers can outperform the S&P 500 by a solid margin (see just how much).
Equally as crucial, optimistic insider trading sentiment is a second way to analyze the world of equities. There are many incentives for an upper level exec to cut shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Plenty of academic studies have demonstrated the valuable potential of this tactic if piggybackers understand what to do (learn more here).
Keeping this in mind, we’re going to analyze the newest info surrounding ExOne Co (NASDAQ:XONE).
Hedge fund activity in ExOne Co (NASDAQ:XONE)
In preparation for the third quarter, a total of 9 of the hedge funds we track held long positions in this stock, a change of 13% from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings substantially.
According to our 13F database, Drew Cupps’s Cupps Capital Management had the biggest position in ExOne Co (NASDAQ:XONE), worth close to $17.1 million, accounting for 1.4% of its total 13F portfolio. On Cupps Capital Management’s heels is Crispin Odey of Odey Asset Management Group, with a $16.9 million position; the fund has 0.7% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include Charles Clough’s Clough Capital Partners, Richard Driehaus’s Driehaus Capital and Chuck Royce’s Royce & Associates.
As industrywide interest increased, specific money managers have been driving this bullishness. Cupps Capital Management, managed by Drew Cupps, assembled the largest position in ExOne Co (NASDAQ:XONE). Cupps Capital Management had 17.1 million invested in the company at the end of the quarter. Crispin Odey’s Odey Asset Management Group also made a $16.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Charles Clough’s Clough Capital Partners, Richard Driehaus’s Driehaus Capital, and Chuck Royce’s Royce & Associates.
What have insiders been doing with ExOne Co (NASDAQ:XONE)?
Insider buying is best served when the company in question has experienced transactions within the past six months. Over the last 180-day time period, ExOne Co (NASDAQ:XONE) has seen 4 unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to ExOne Co (NASDAQ:XONE). These stocks are Global Power Equipment Group Inc (NASDAQ:GLPW), The Gorman-Rupp Company (NYSEAMEX:GRC), John Bean Technologies Corporation (NYSE:JBT), China Yuchai International Limited (NYSE:CYD), and TMS International Corp. (NYSE:TMS). All of these stocks are in the diversified machinery industry and their market caps are closest to XONE’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Global Power Equipment Group Inc (NASDAQ:GLPW) | 7 | 0 | 0 |
| The Gorman-Rupp Company (NYSEAMEX:GRC) | 5 | 1 | 1 |
| John Bean Technologies Corporation (NYSE:JBT) | 15 | 0 | 3 |
| China Yuchai International Limited (NYSE:CYD) | 7 | 0 | 0 |
| TMS International Corp. (NYSE:TMS) | 9 | 0 | 0 |
Using the results demonstrated by our strategies, average investors should always watch hedge fund and insider trading sentiment, and ExOne Co (NASDAQ:XONE) is no exception.
