First Niagara Financial Group Inc. (FNFG): Are Hedge Funds Right About This Stock?

Should First Niagara Financial Group Inc. (NASDAQ:FNFG) investors track the following data?

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Now that that’s out of the way, let’s analyze the latest info surrounding First Niagara Financial Group Inc. (NASDAQ:FNFG).

Hedge fund activity in First Niagara Financial Group Inc. (NASDAQ:FNFG)

At the end of the second quarter, a total of 18 of the hedge funds we track were long in this stock, a change of -5% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their stakes substantially.

According to our 13F database, Dreman Value Management, managed by David Dreman, holds the most valuable position in First Niagara Financial Group Inc. (NASDAQ:FNFG). Dreman Value Management has a $26.1 million position in the stock, comprising 0.8% of its 13F portfolio. The second largest stake is held by Ken Griffin of Citadel Investment Group, with a $17.7 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Anand Parekh’s Alyeska Investment Group, Ric Dillon’s Diamond Hill Capital and Israel Englander’s Millennium Management.

Since First Niagara Financial Group Inc. (NASDAQ:FNFG) has faced a fall in interest from the entirety of the hedge funds we track, we can see that there exists a select few hedgies who were dropping their full holdings in Q1. Interestingly, Neil Chriss’s Hutchin Hill Capital dumped the biggest investment of the 450+ funds we monitor, valued at an estimated $13.1 million in stock, and Daniel S. Och of OZ Management was right behind this move, as the fund dropped about $12.1 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 1 funds in Q1.

How have insiders been trading First Niagara Financial Group Inc. (NASDAQ:FNFG)?

Insider buying made by high-level executives is at its handiest when the company in focus has experienced transactions within the past six months. Over the latest six-month time frame, First Niagara Financial Group Inc. (NASDAQ:FNFG) has experienced zero unique insiders purchasing, 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 First Niagara Financial Group Inc. (NASDAQ:FNFG). These stocks are Washington Federal Inc. (NASDAQ:WAFD), Ocwen Financial Corporation (NYSE:OCN), Hudson City Bancorp, Inc. (NASDAQ:HCBK), People’s United Financial, Inc. (NASDAQ:PBCT), and Investors Bancorp, Inc. (NASDAQ:ISBC). This group of stocks belong to the savings & loans industry and their market caps are similar to FNFG’s market cap.

Using the returns shown by Insider Monkey’s research, average investors should always watch hedge fund and insider trading activity, and First Niagara Financial Group Inc. (NASDAQ:FNFG) shareholders fit into this picture quite nicely.

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