Is Cimarex Energy Co (NYSE:XEC) a good investment?
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Equally as useful, bullish insider trading activity is another way to analyze the stock market universe. There are a variety of reasons for a bullish insider to drop shares of his or her company, but just one, very clear reason why they would buy. Several empirical studies have demonstrated the useful potential of this method if investors understand what to do (learn more here).
Furthermore, let’s analyze the latest info for Cimarex Energy Co (NYSE:XEC).
How are hedge funds trading Cimarex Energy Co (NYSE:XEC)?
At the end of the second quarter, a total of 24 of the hedge funds we track held long positions in this stock, a change of 20% from one quarter earlier. With hedgies’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were upping their holdings considerably.
With a general bullishness amongst the titans, particular hedge funds have jumped into Cimarex Energy Co (NYSE:XEC) headfirst. Citadel Investment Group, managed by Ken Griffin, initiated the most valuable position in Cimarex Energy Co (NYSE:XEC). Citadel Investment Group had 251.9 million invested in the company at the end of the quarter. Ric Dillon’s Diamond Hill Capital also made a $79.2 million investment in the stock during the quarter. The other funds with brand new XEC positions are Chuck Royce’s Royce & Associates, Charles de Vaulx’s International Value Advisers, and Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC.
How are insiders trading Cimarex Energy Co (NYSE:XEC)?
Bullish insider trading is at its handiest when the company we’re looking at has experienced transactions within the past 180 days. Over the latest 180-day time period, Cimarex Energy Co (NYSE:XEC) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Cimarex Energy Co (NYSE:XEC). These stocks are Linn Energy LLC (NASDAQ:LINE), National Fuel Gas Co. (NYSE:NFG), Baytex Energy Corp (USA) (NYSE:BTE), Denbury Resources Inc. (NYSE:DNR), and Plains Exploration & Production Company (NYSE:PXP). All of these stocks are in the independent oil & gas industry and their market caps are similar to XEC’s market cap.
