Flow International Corporation (NASDAQ:FLOW) investors should pay attention to an increase in support from the world’s most elite money managers of late.
In the 21st century investor’s toolkit, there are a multitude of methods market participants can use to analyze publicly traded companies. A couple of the best are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top fund managers can outperform their index-focused peers by a healthy amount (see just how much).
Equally as integral, bullish insider trading activity is a second way to break down the financial markets. As the old adage goes: there are lots of stimuli for a bullish insider to get rid of shares of his or her company, but only one, very clear reason why they would buy. Several academic studies have demonstrated the valuable potential of this method if piggybackers understand where to look (learn more here).
Consequently, it’s important to take a gander at the recent action encompassing Flow International Corporation (NASDAQ:FLOW).
What have hedge funds been doing with Flow International Corporation (NASDAQ:FLOW)?
Heading into 2013, a total of 12 of the hedge funds we track were bullish in this stock, a change of 9% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes significantly.
When looking at the hedgies we track, Chuck Royce’s Royce & Associates had the biggest position in Flow International Corporation (NASDAQ:FLOW), worth close to $9.7 million, comprising less than 0.1%% of its total 13F portfolio. Coming in second is Otter Creek Management, managed by Roger Keith Long, which held a $9.5 million position; the fund has 1.5% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include “Richard S. Meisenberg’s ACK Asset Management, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors and Glenn J. Krevlin’s Glenhill Advisors.
With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Citadel Investment Group, managed by Ken Griffin, established the largest position in Flow International Corporation (NASDAQ:FLOW). Citadel Investment Group had 0 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0 million investment in the stock during the quarter.
How have insiders been trading Flow International Corporation (NASDAQ:FLOW)?
Insider buying is most useful when the company we’re looking at has seen transactions within the past six months. Over the last 180-day time frame, Flow International Corporation (NASDAQ:FLOW) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Flow International Corporation (NASDAQ:FLOW). These stocks are China Ming Yang Wind Power Group Ltd (NYSE:MY), Met-Pro Corporation (NYSE:MPR), Manitex International, Inc. (NASDAQ:MNTX), Tecumseh Products Company (NASDAQ:TECUA), and Ampco-Pittsburgh Corp. (NYSE:AP). All of these stocks are in the diversified machinery industry and their market caps match FLOW’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| China Ming Yang Wind Power Group Ltd (NYSE:MY) | 2 | 0 | 0 |
| Met-Pro Corporation (NYSE:MPR) | 6 | 0 | 0 |
| Manitex International, Inc. (NASDAQ:MNTX) | 5 | 0 | 1 |
| Tecumseh Products Company (NASDAQ:TECUA) | 3 | 0 | 1 |
| Ampco-Pittsburgh Corp. (NYSE:AP) | 5 | 0 | 0 |
With the results demonstrated by Insider Monkey’s studies, everyday investors should always monitor hedge fund and insider trading sentiment, and Flow International Corporation (NASDAQ:FLOW) applies perfectly to this mantra.
