Hedge Funds Are Crazy About Estee Lauder Companies Inc (EL)

Is Estee Lauder Companies Inc (NYSE:EL) a buy?

At the moment, there are plenty of methods shareholders can use to analyze their holdings. Two of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best fund managers can outclass the S&P 500 by a solid margin (see just how much).

Equally as crucial, positive insider trading activity is another way to look at the marketplace. There are many reasons for an executive to sell shares of his or her company, but just one, very simple reason why they would buy. Various academic studies have demonstrated the useful potential of this method if piggybackers understand what to do (learn more here).

Keeping this in mind, we’re going to discuss the latest info for Estee Lauder Companies Inc (NYSE:EL).

How are hedge funds trading Estee Lauder Companies Inc (NYSE:EL)?

Heading into Q3, a total of 32 of the hedge funds we track held long positions in this stock, a change of 7% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their stakes significantly.

When using filings from the hedgies we track, Viking Global, managed by Andreas Halvorsen, holds the most valuable position in Estee Lauder Companies Inc (NYSE:EL). Viking Global has a $202.4 million position in the stock, comprising 1.1% of its 13F portfolio. On Viking Global’s heels is Adage Capital Management, managed by Phill Gross and Robert Atchinson, which held a $168.2 million position; 0.5% of its 13F portfolio is allocated to the company. Some other hedge funds that hold long positions include Robert Karr’s Joho Capital, Donald Chiboucis’s Columbus Circle Investors and John Lykouretzos’s Hoplite Capital Management.

Now, specific money managers were breaking ground themselves. Viking Global, managed by Andreas Halvorsen, established the biggest position in Estee Lauder Companies Inc (NYSE:EL). Viking Global had 202.4 million invested in the company at the end of the quarter. Phill Gross and Robert Atchinson’s Adage Capital Management also initiated a $168.2 million position during the quarter. The following funds were also among the new EL investors: Robert Karr’s Joho Capital, Donald Chiboucis’s Columbus Circle Investors, and John Lykouretzos’s Hoplite Capital Management.

How are insiders trading Estee Lauder Companies Inc (NYSE:EL)?

Legal insider trading, particularly when it’s bullish, is most useful when the primary stock in question has experienced transactions within the past six months. Over the last 180-day time frame, Estee Lauder Companies Inc (NYSE:EL) has experienced zero unique insiders purchasing, and 8 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 Estee Lauder Companies Inc (NYSE:EL). These stocks are The Procter & Gamble Company (NYSE:PG), Energizer Holdings, Inc. (NYSE:ENR), Avon Products, Inc. (NYSE:AVP), Colgate-Palmolive Company (NYSE:CL), and Kimberly Clark Corp (NYSE:KMB). This group of stocks are the members of the personal products industry and their market caps are closest to EL’s market cap.