Should RPM International Inc. (NYSE:RPM) investors track the following data?
In today’s marketplace, there are tons of gauges market participants can use to watch publicly traded companies. Two of the most useful are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top hedge fund managers can trounce the broader indices by a significant margin (see just how much).
Equally as key, bullish insider trading activity is another way to look at the investments you’re interested in. There are a variety of stimuli for a corporate insider to sell shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the useful potential of this strategy if you understand what to do (learn more here).
What’s more, we’re going to study the latest info for RPM International Inc. (NYSE:RPM).
How have hedgies been trading RPM International Inc. (NYSE:RPM)?
In preparation for the third quarter, a total of 16 of the hedge funds we track were long in this stock, a change of 33% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their holdings substantially.
According to our 13F database, Steven Cohen’s SAC Capital Advisors had the most valuable position in RPM International Inc. (NYSE:RPM), worth close to $76 million, accounting for 0.4% of its total 13F portfolio. Sitting at the No. 2 spot is Jim Simons of Renaissance Technologies, with a $22.5 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include D. E. Shaw’s D E Shaw, SAC Subsidiary’s CR Intrinsic Investors and Cliff Asness’s AQR Capital Management.
As aggregate interest spiked, certain bigger names have jumped into RPM International Inc. (NYSE:RPM) headfirst. SAC Capital Advisors, managed by Steven Cohen, initiated the most valuable position in RPM International Inc. (NYSE:RPM). SAC Capital Advisors had 76 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $22.5 million investment in the stock during the quarter. The following funds were also among the new RPM investors: D. E. Shaw’s D E Shaw, SAC Subsidiary’s CR Intrinsic Investors, and Cliff Asness’s AQR Capital Management.
Insider trading activity in RPM International Inc. (NYSE:RPM)
Insider buying is most useful when the primary stock in question has seen transactions within the past half-year. Over the last half-year time frame, RPM International Inc. (NYSE:RPM) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to RPM International Inc. (NYSE:RPM). These stocks are The Valspar Corporation (NYSE:VAL), Cytec Industries Inc (NYSE:CYT), Rockwood Holdings, Inc. (NYSE:ROC), NewMarket Corporation (NYSE:NEU), and Methanex Corporation (USA) (NASDAQ:MEOH). This group of stocks are the members of the specialty chemicals industry and their market caps match RPM’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| The Valspar Corporation (NYSE:VAL) | 25 | 0 | 0 |
| Cytec Industries Inc (NYSE:CYT) | 19 | 0 | 0 |
| Rockwood Holdings, Inc. (NYSE:ROC) | 31 | 0 | 0 |
| NewMarket Corporation (NYSE:NEU) | 11 | 0 | 0 |
| Methanex Corporation (USA) (NASDAQ:MEOH) | 23 | 0 | 0 |
Using the returns shown by our tactics, average investors should always track hedge fund and insider trading sentiment, and RPM International Inc. (NYSE:RPM) is no exception.
