To the average investor, there are many gauges shareholders can use to track Mr. Market. A duo 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 top picks of the elite hedge fund managers can trounce the market by a solid margin (see just how much).
Equally as key, optimistic insider trading sentiment is another way to look at the stock market universe. Obviously, there are a number of incentives for an executive to get rid of shares of his or her company, but only one, very clear reason why they would initiate a purchase. Various academic studies have demonstrated the market-beating potential of this strategy if investors know what to do (learn more here).
Thus, we’re going to study the latest info surrounding Pilgrim’s Pride Corporation (NASDAQ:PPC).
What does the smart money think about Pilgrim’s Pride Corporation (NASDAQ:PPC)?
At Q2’s end, a total of 20 of the hedge funds we track held long positions in this stock, a change of 43% from one quarter earlier. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were boosting their holdings significantly.
Out of the hedge funds we follow, Citadel Investment Group, managed by Ken Griffin, holds the biggest position in Pilgrim’s Pride Corporation (NASDAQ:PPC). Citadel Investment Group has a $8.2 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second largest stake is held by Sigma Capital Management, managed by SAC Subsidiary, which held a $8 million call position; 0.4% of its 13F portfolio is allocated to the stock. Other peers that hold long positions include Cliff Asness’s AQR Capital Management, Robert B. Gillam’s McKinley Capital Management and Malcolm Fairbairn’s Ascend Capital.
Consequently, certain bigger names have been driving this bullishness. Citadel Investment Group, managed by Ken Griffin, established the most outsized position in Pilgrim’s Pride Corporation (NASDAQ:PPC). Citadel Investment Group had 8.2 million invested in the company at the end of the quarter. SAC Subsidiary’s Sigma Capital Management also initiated a $8 million position during the quarter. The following funds were also among the new PPC investors: Cliff Asness’s AQR Capital Management, Robert B. Gillam’s McKinley Capital Management, and Malcolm Fairbairn’s Ascend Capital.
How have insiders been trading Pilgrim’s Pride Corporation (NASDAQ:PPC)?
Insider buying made by high-level executives is particularly usable when the company in focus has seen transactions within the past six months. Over the last six-month time period, Pilgrim’s Pride Corporation (NASDAQ:PPC) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Pilgrim’s Pride Corporation (NASDAQ:PPC). These stocks are Tyson Foods, Inc. (NYSE:TSN), Leucadia National Corp. (NYSE:LUK), Smithfield Foods, Inc. (NYSE:SFD), Industrias Bachoco, S.A.B. de C.V. (ADR) (NYSE:IBA), and Seaboard Corporation (NYSEAMEX:SEB). This group of stocks are the members of the meat products industry and their market caps are closest to PPC’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Tyson Foods, Inc. (NYSE:TSN) | 29 | 0 | 0 |
| Leucadia National Corp. (NYSE:LUK) | 30 | 0 | 0 |
| Smithfield Foods, Inc. (NYSE:SFD) | 43 | 0 | 0 |
| Industrias Bachoco, S.A.B. de C.V. (ADR) (NYSE:IBA) | 0 | 0 | |
| Seaboard Corporation (NYSEAMEX:SEB) | 6 | 0 | 0 |
Using the results demonstrated by Insider Monkey’s strategies, regular investors must always watch hedge fund and insider trading sentiment, and Pilgrim’s Pride Corporation (NASDAQ:PPC) is no exception.
