Gentherm Inc (NASDAQ:THRM) has seen a decrease in hedge fund sentiment lately.
At the moment, there are tons of metrics investors can use to analyze stocks. Some of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can trounce their index-focused peers by a solid amount (see just how much).
Equally as key, optimistic insider trading activity is a second way to parse down the world of equities. Obviously, there are lots of stimuli for a bullish insider to get rid of shares of his or her company, but just one, very clear reason why they would behave bullishly. Several empirical studies have demonstrated the useful potential of this strategy if piggybackers understand where to look (learn more here).
With these “truths” under our belt, let’s take a gander at the key action surrounding Gentherm Inc (NASDAQ:THRM).
How have hedgies been trading Gentherm Inc (NASDAQ:THRM)?
Heading into Q2, a total of 10 of the hedge funds we track were long in this stock, a change of -9% from the first quarter. With hedgies’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were upping their stakes substantially.
When looking at the hedgies we track, Park West Asset Management, managed by Peter S. Park, holds the biggest position in Gentherm Inc (NASDAQ:THRM). Park West Asset Management has a $22.5 million position in the stock, comprising 2.5% of its 13F portfolio. Sitting at the No. 2 spot is Gregory A. Weaver of Invicta Capital Management, with a $11.5 million position; the fund has 5.1% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include Phil Frohlich’s Prescott Group Capital Management, Andy Redleaf’s Whitebox Advisors and Richard Driehaus’s Driehaus Capital.
Seeing as Gentherm Inc (NASDAQ:THRM) has witnessed declining sentiment from hedge fund managers, logic holds that there exists a select few hedge funds who were dropping their positions entirely heading into Q2. At the top of the heap, Phill Gross and Robert Atchinson’s Adage Capital Management sold off the largest position of all the hedgies we key on, worth close to $8.8 million in stock., and Jim Simons of Renaissance Technologies was right behind this move, as the fund dropped about $1.1 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 1 funds heading into Q2.
What have insiders been doing with Gentherm Inc (NASDAQ:THRM)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company we’re looking at has seen transactions within the past half-year. Over the latest 180-day time frame, Gentherm Inc (NASDAQ:THRM) has experienced zero unique insiders buying, and 6 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Gentherm Inc (NASDAQ:THRM). These stocks are Meritor Inc (NYSE:MTOR), Standard Motor Products, Inc. (NYSE:SMP), Federal-Mogul Corporation (NASDAQ:FDML), Superior Industries International Inc. (NYSE:SUP), and Remy International Inc (NASDAQ:REMY). This group of stocks belong to the auto parts industry and their market caps are similar to THRM’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Meritor Inc (NYSE:MTOR) | 19 | 0 | 6 |
| Standard Motor Products, Inc. (NYSE:SMP) | 12 | 0 | 8 |
| Federal-Mogul Corporation (NASDAQ:FDML) | 5 | 0 | 0 |
| Superior Industries International Inc. (NYSE:SUP) | 10 | 0 | 4 |
| Remy International Inc (NASDAQ:REMY) | 4 | 0 | 2 |
With the results demonstrated by the aforementioned research, everyday investors must always monitor hedge fund and insider trading sentiment, and Gentherm Inc (NASDAQ:THRM) is an important part of this process.
