Is National Health Investors Inc (NYSE:NHI) a good investment?
In the financial world, there are a multitude of methods investors can use to analyze Mr. Market. A couple of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite hedge fund managers can beat the broader indices by a solid margin (see just how much).
Equally as crucial, bullish insider trading activity is another way to look at the world of equities. As the old adage goes: there are plenty of stimuli for a corporate insider to downsize shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this method if you know what to do (learn more here).
Now that that’s out of the way, it’s important to discuss the recent info surrounding National Health Investors Inc (NYSE:NHI).
How are hedge funds trading National Health Investors Inc (NYSE:NHI)?
At Q2’s end, a total of 8 of the hedge funds we track were bullish in this stock, a change of 33% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings significantly.
According to our 13F database, Renaissance Technologies, managed by Jim Simons, holds the most valuable position in National Health Investors Inc (NYSE:NHI). Renaissance Technologies has a $12.7 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second largest stake is held by Royce & Associates, managed by Chuck Royce, which held a $10.7 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other hedgies with similar optimism include Cliff Asness’s AQR Capital Management, Brian Ashford-Russell and Tim Woolley’s Polar Capital and Ken Griffin’s Citadel Investment Group.
As industrywide interest increased, particular hedge funds were leading the bulls’ herd. Renaissance Technologies, managed by Jim Simons, assembled the most outsized position in National Health Investors Inc (NYSE:NHI). Renaissance Technologies had 12.7 million invested in the company at the end of the quarter. Chuck Royce’s Royce & Associates also initiated a $10.7 million position during the quarter. The other funds with new positions in the stock are Cliff Asness’s AQR Capital Management, Brian Ashford-Russell and Tim Woolley’s Polar Capital, and Ken Griffin’s Citadel Investment Group.
How are insiders trading National Health Investors Inc (NYSE:NHI)?
Insider buying made by high-level executives is particularly usable when the primary stock in question has experienced transactions within the past 180 days. Over the latest 180-day time period, National Health Investors Inc (NYSE:NHI) has seen zero unique insiders buying, 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 National Health Investors Inc (NYSE:NHI). These stocks are Sabra Health Care REIT Inc (NASDAQ:SBRA), LTC Properties Inc (NYSE:LTC), Healthcare Trust Of America Inc (NYSE:HTA), Healthcare Realty Trust Inc (NYSE:HR), and Medical Properties Trust, Inc. (NYSE:MPW). This group of stocks are in the reit – healthcare facilities industry and their market caps resemble NHI’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Sabra Health Care REIT Inc (NASDAQ:SBRA) | 12 | 0 | 0 |
| LTC Properties Inc (NYSE:LTC) | 7 | 0 | 0 |
| Healthcare Trust Of America Inc (NYSE:HTA) | 6 | 0 | 0 |
| Healthcare Realty Trust Inc (NYSE:HR) | 10 | 0 | 0 |
| Medical Properties Trust, Inc. (NYSE:MPW) | 9 | 0 | 0 |
Using the returns demonstrated by our analyses, average investors must always keep one eye on hedge fund and insider trading sentiment, and National Health Investors Inc (NYSE:NHI) is an important part of this process.
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National Health Investors Inc (NHI): Are Hedge Funds Right About This Stock?
