Is Superior Industries International Inc. (NYSE:SUP) a bargain? The best stock pickers are getting more bullish. The number of bullish hedge fund bets went up by 2 in recent months.
To the average investor, there are plenty of metrics shareholders can use to monitor Mr. Market. A pair of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best fund managers can outclass the market by a very impressive amount (see just how much).
Just as beneficial, optimistic insider trading sentiment is a second way to break down the financial markets. There are many motivations for an executive to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of academic studies have demonstrated the impressive potential of this tactic if shareholders know where to look (learn more here).
With these “truths” under our belt, we’re going to take a peek at the recent action surrounding Superior Industries International Inc. (NYSE:SUP).
What have hedge funds been doing with Superior Industries International Inc. (NYSE:SUP)?
At the end of the fourth quarter, a total of 10 of the hedge funds we track held long positions in this stock, a change of 25% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes substantially.
According to our comprehensive database, Third Avenue Management, managed by Martin Whitman, holds the largest position in Superior Industries International Inc. (NYSE:SUP). Third Avenue Management has a $43 million position in the stock, comprising 0.9% of its 13F portfolio. The second largest stake is held by GAMCO Investors, managed by Mario Gabelli, which held a $33 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Chuck Royce’s Royce & Associates, Joel Greenblatt’s Gotham Asset Management and Cliff Asness’s AQR Capital Management.
With a general bullishness amongst the heavyweights, key hedge funds were leading the bulls’ herd. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, created the most outsized position in Superior Industries International Inc. (NYSE:SUP). Arrowstreet Capital had 1 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also initiated a $0 million position during the quarter.
What have insiders been doing with Superior Industries International Inc. (NYSE:SUP)?
Insider trading activity, especially when it’s bullish, is particularly usable when the company in focus has experienced transactions within the past half-year. Over the latest 180-day time period, Superior Industries International Inc. (NYSE:SUP) has experienced zero unique insiders buying, and 4 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Superior Industries International Inc. (NYSE:SUP). These stocks are Modine Manufacturing Co. (NYSE:MOD), Federal-Mogul Corporation (NASDAQ:FDML), Remy International Inc (NASDAQ:REMY), Meritor Inc (NYSE:MTOR), and Gentherm Inc (NASDAQ:THRM). All of these stocks are in the auto parts industry and their market caps are similar to SUP’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Modine Manufacturing Co. (NYSE:MOD) | 6 | 0 | 0 |
| Federal-Mogul Corporation (NASDAQ:FDML) | 5 | 0 | 0 |
| Remy International Inc (NASDAQ:REMY) | 3 | 0 | 2 |
| Meritor Inc (NYSE:MTOR) | 20 | 0 | 6 |
| Gentherm Inc (NASDAQ:THRM) | 10 | 0 | 6 |
With the returns demonstrated by Insider Monkey’s tactics, everyday investors should always keep an eye on hedge fund and insider trading activity, and Superior Industries International Inc. (NYSE:SUP) shareholders fit into this picture quite nicely.
