Flagstar Bancorp Inc (FBC): Hedge Fund and Insider Sentiment Unchanged, What Should You Do?

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Just as crucial, optimistic insider trading sentiment is another way to look at the marketplace. Obviously, there are plenty of reasons for a bullish insider to drop shares of his or her company, but only one, very obvious reason why they would buy. Many academic studies have demonstrated the market-beating potential of this strategy if you understand what to do (learn more here).

Keeping this in mind, it’s important to discuss the newest info for Flagstar Bancorp Inc (NYSE:FBC).

How are hedge funds trading Flagstar Bancorp Inc (NYSE:FBC)?

Heading into Q3, a total of 12 of the hedge funds we track held long positions in this stock, a change of 0% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their stakes meaningfully.

According to our 13F database, D E Shaw, managed by D. E. Shaw, holds the most valuable position in Flagstar Bancorp Inc (NYSE:FBC). D E Shaw has a $3.4 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On D E Shaw’s heels is James Pallotta of Raptor Capital Management, with a $3.2 million position; 1.7% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include Andy Redleaf’s Whitebox Advisors, Mike Vranos’s Ellington and Cliff Asness’s AQR Capital Management.

Since Flagstar Bancorp Inc (NYSE:FBC) has witnessed dropping sentiment from upper-tier hedge fund managers, it’s easy to see that there exists a select few fund managers that elected to cut their positions entirely last quarter. It’s worth mentioning that Geoffrey Raynor’s Q Investments (Specter Holdings) dropped the largest stake of the “upper crust” of funds we watch, comprising close to $18.8 million in stock, and Gregory Fraser Rudolph Kluiber and Timothy Kroch of GRT Capital Partners was right behind this move, as the fund sold off about $0.2 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

How are insiders trading Flagstar Bancorp Inc (NYSE:FBC)?

Insider buying made by high-level executives is most useful when the primary stock in question has seen transactions within the past six months. Over the last half-year time frame, Flagstar Bancorp Inc (NYSE:FBC) 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 Flagstar Bancorp Inc (NYSE:FBC). These stocks are Brookline Bancorp, Inc. (NASDAQ:BRKL), Berkshire Hills Bancorp, Inc. (NYSE:BHLB), Provident Financial Services, Inc. (NYSE:PFS), Kearny Financial Corp. (NASDAQ:KRNY), and Columbia Banking System Inc (NASDAQ:COLB). This group of stocks are in the savings & loans industry and their market caps resemble FBC’s market cap.

Using the results shown by Insider Monkey’s tactics, average investors must always track hedge fund and insider trading sentiment, and Flagstar Bancorp Inc (NYSE:FBC) applies perfectly to this mantra.

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