At the moment, there are plenty of methods market participants can use to watch stocks. A duo of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best hedge fund managers can outclass their index-focused peers by a very impressive margin (see just how much).
Equally as key, optimistic insider trading activity is a second way to look at the marketplace. There are lots of incentives for an upper level exec to cut shares of his or her company, but just one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the impressive potential of this tactic if you understand what to do (learn more here).
What’s more, we’re going to examine the recent info about Sally Beauty Holdings, Inc. (NYSE:SBH).
How have hedgies been trading Sally Beauty Holdings, Inc. (NYSE:SBH)?
At Q2’s end, a total of 28 of the hedge funds we track were bullish in this stock, a change of 4% from one quarter earlier. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were increasing their holdings considerably.
When using filings from the hedgies we track, Scout Capital Management, managed by James Crichton and Adam Weiss, holds the largest position in Sally Beauty Holdings, Inc. (NYSE:SBH). Scout Capital Management has a $341.3 million position in the stock, comprising 5.6% of its 13F portfolio. On Scout Capital Management’s heels is Lone Pine Capital, managed by Stephen Mandel, which held a $233.1 million position; the fund has 1.1% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Alan Fournier’s Pennant Capital Management, John Griffin’s Blue Ridge Capital and Andrew J. M. Spokes’s Farallon Capital.
As industrywide interest increased, specific money managers have jumped into Sally Beauty Holdings, Inc. (NYSE:SBH) headfirst. Scout Capital Management, managed by James Crichton and Adam Weiss, created the most outsized position in Sally Beauty Holdings, Inc. (NYSE:SBH). Scout Capital Management had 341.3 million invested in the company at the end of the quarter. Stephen Mandel’s Lone Pine Capital also made a $233.1 million investment in the stock during the quarter. The other funds with new positions in the stock are Alan Fournier’s Pennant Capital Management, John Griffin’s Blue Ridge Capital, and Andrew J. M. Spokes’s Farallon Capital.
What do corporate executives and insiders think about Sally Beauty Holdings, Inc. (NYSE:SBH)?
Bullish insider trading is most useful when the primary stock in question has seen transactions within the past six months. Over the last half-year time period, Sally Beauty Holdings, Inc. (NYSE:SBH) has seen 1 unique insiders purchasing, and 5 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 Sally Beauty Holdings, Inc. (NYSE:SBH). These stocks are Sothebys (NYSE:BID), Staples, Inc. (NASDAQ:SPLS), HSN, Inc. (NASDAQ:HSNI), Tractor Supply Company (NASDAQ:TSCO), and PetSmart, Inc. (NASDAQ:PETM). This group of stocks are in the specialty retail, other industry and their market caps resemble SBH’s market cap.
