In the financial world, there are plenty of methods market participants can use to watch stocks. A couple 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 elite fund managers can outpace the market by a significant margin (see just how much).
Just as crucial, optimistic insider trading sentiment is a second way to analyze the financial markets. As the old adage goes: there are lots of stimuli for an executive to cut shares of his or her company, but only one, very clear reason why they would behave bullishly. Various academic studies have demonstrated the impressive potential of this method if piggybackers understand what to do (learn more here).
What’s more, it’s important to analyze the recent info surrounding Realogy Holdings Corp (NYSE:RLGY).
Hedge fund activity in Realogy Holdings Corp (NYSE:RLGY)
Heading into Q3, a total of 49 of the hedge funds we track were bullish in this stock, a change of 40% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their holdings significantly.
When using filings from the hedgies we track, Paulson & Co, managed by John Paulson, holds the most valuable position in Realogy Holdings Corp (NYSE:RLGY). Paulson & Co has a $622.5 million position in the stock, comprising 4.4% of its 13F portfolio. On Paulson & Co’s heels is Stephen Mandel of Lone Pine Capital, with a $379.6 million position; the fund has 1.8% of its 13F portfolio invested in the stock. Remaining hedge funds that are bullish include Philippe Laffont’s Coatue Management, Lee Ainslie’s Maverick Capital and James Dinan’s York Capital Management.
As one would understandably expect, specific money managers have jumped into Realogy Holdings Corp (NYSE:RLGY) headfirst. Paulson & Co, managed by John Paulson, established the largest position in Realogy Holdings Corp (NYSE:RLGY). Paulson & Co had 622.5 million invested in the company at the end of the quarter. Stephen Mandel’s Lone Pine Capital also initiated a $379.6 million position during the quarter. The following funds were also among the new RLGY investors: Philippe Laffont’s Coatue Management, Lee Ainslie’s Maverick Capital, and James Dinan’s York Capital Management.
What have insiders been doing with Realogy Holdings Corp (NYSE:RLGY)?
Bullish insider trading is particularly usable when the primary stock in question has seen transactions within the past six months. Over the latest 180-day time frame, Realogy Holdings Corp (NYSE:RLGY) has seen zero unique insiders purchasing, and 7 insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Realogy Holdings Corp (NYSE:RLGY). These stocks are Forest City Enterprises, Inc. (NYSE:FCE-A), Jones Lang LaSalle Inc (NYSE:JLL), Brookfield Office Properties Inc (USA) (NYSE:BPO), Icahn Enterprises LP (NASDAQ:IEP), and CBRE Group Inc (NYSE:CBG). This group of stocks are in the property management industry and their market caps are similar to RLGY’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Forest City Enterprises, Inc. (NYSE:FCE-A) | 20 | 0 | 0 |
| Jones Lang LaSalle Inc (NYSE:JLL) | 19 | 0 | 4 |
| Brookfield Office Properties Inc (USA) (NYSE:BPO) | 7 | 0 | 0 |
| Icahn Enterprises LP (NASDAQ:IEP) | 4 | 6 | 0 |
| CBRE Group Inc (NYSE:CBG) | 23 | 0 | 8 |
Using the results explained by our research, average investors must always track hedge fund and insider trading activity, and Realogy Holdings Corp (NYSE:RLGY) applies perfectly to this mantra.
