Is Fluor Corporation (NEW) (NYSE:FLR) a buy?
To the average investor, there are dozens of methods shareholders can use to track the equity markets. Two of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can outclass the S&P 500 by a superb margin (see just how much).
Equally as necessary, optimistic insider trading activity is another way to look at the financial markets. As the old adage goes: there are plenty of stimuli for an upper level exec to downsize shares of his or her company, but just one, very clear reason why they would buy. Plenty of empirical studies have demonstrated the useful potential of this method if shareholders understand what to do (learn more here).
Keeping this in mind, let’s analyze the newest info for Fluor Corporation (NEW) (NYSE:FLR).
What does the smart money think about Fluor Corporation (NEW) (NYSE:FLR)?
At the end of the second quarter, a total of 34 of the hedge funds we track held long positions in this stock, a change of 6% from the first quarter. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their holdings considerably.
According to our 13F database, Appaloosa Management LP, managed by David Tepper, holds the biggest position in Fluor Corporation (NEW) (NYSE:FLR). Appaloosa Management LP has a $88.4 million position in the stock, comprising 1.3% of its 13F portfolio. Coming in second is Robert Bishop of Impala Asset Management, with a $47.6 million position; 2.7% of its 13F portfolio is allocated to the company. Other hedge funds with similar optimism include Daniel Bubis’s Tetrem Capital Management, William Harnisch’s Peconic Partners LLC and Alan Fournier’s Pennant Capital Management.
With a general bullishness amongst the titans, certain money managers have been driving this bullishness. Appaloosa Management LP, managed by David Tepper, assembled the most outsized position in Fluor Corporation (NEW) (NYSE:FLR). Appaloosa Management LP had 88.4 million invested in the company at the end of the quarter. Robert Bishop’s Impala Asset Management also initiated a $47.6 million position during the quarter. The other funds with new positions in the stock are Daniel Bubis’s Tetrem Capital Management, William Harnisch’s Peconic Partners LLC, and Alan Fournier’s Pennant Capital Management.
How have insiders been trading Fluor Corporation (NEW) (NYSE:FLR)?
Bullish insider trading is best served when the company in focus has seen transactions within the past 180 days. Over the latest half-year time frame, Fluor Corporation (NEW) (NYSE:FLR) has experienced zero unique insiders buying, and zero 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 Fluor Corporation (NEW) (NYSE:FLR). These stocks are Granite Construction Inc. (NYSE:GVA), Empresas ICA SA (ADR) (NYSE:ICA), MasTec, Inc. (NYSE:MTZ), Foster Wheeler AG (NASDAQ:FWLT), and McDermott International (NYSE:MDR). This group of stocks are the members of the heavy construction industry and their market caps match FLR’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Granite Construction Inc. (NYSE:GVA) | 12 | 0 | 0 |
| Empresas ICA SA (ADR) (NYSE:ICA) | 4 | 0 | 0 |
| MasTec, Inc. (NYSE:MTZ) | 20 | 0 | 0 |
| Foster Wheeler AG (NASDAQ:FWLT) | 20 | 0 | 0 |
| McDermott International (NYSE:MDR) | 29 | 0 | 0 |
Using the returns explained by our analyses, regular investors should always keep one eye on hedge fund and insider trading activity, and Fluor Corporation (NEW) (NYSE:FLR) is no exception.
