Should Lennox International Inc. (NYSE:LII) investors track the following data?
In today’s marketplace, there are many gauges market participants can use to track publicly traded companies. A couple of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best hedge fund managers can outperform their index-focused peers by a solid amount (see just how much).
Just as key, positive insider trading activity is another way to analyze the marketplace. As the old adage goes: there are plenty of incentives for a corporate insider to cut shares of his or her company, but only one, very clear reason why they would buy. Various academic studies have demonstrated the useful potential of this strategy if “monkeys” know where to look (learn more here).
Thus, it’s important to examine the latest info for Lennox International Inc. (NYSE:LII).
What have hedge funds been doing with Lennox International Inc. (NYSE:LII)?
In preparation for the third quarter, a total of 20 of the hedge funds we track were long in this stock, a change of 18% 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 increasing their holdings significantly.
According to our 13F database, Robert Joseph Caruso’s Select Equity Group had the largest position in Lennox International Inc. (NYSE:LII), worth close to $73.2 million, comprising 1% of its total 13F portfolio. The second largest stake is held by SAC Capital Advisors, managed by Steven Cohen, which held a $29 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Alexander Mitchell’s Scopus Asset Management, Phill Gross and Robert Atchinson’s Adage Capital Management and Edgar Wachenheim’s Greenhaven Associates.
As industrywide interest increased, particular hedge funds have jumped into Lennox International Inc. (NYSE:LII) headfirst. Select Equity Group, managed by Robert Joseph Caruso, assembled the biggest position in Lennox International Inc. (NYSE:LII). Select Equity Group had 73.2 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also made a $29 million investment in the stock during the quarter. The other funds with brand new LII positions are Alexander Mitchell’s Scopus Asset Management, Phill Gross and Robert Atchinson’s Adage Capital Management, and Edgar Wachenheim’s Greenhaven Associates.
Insider trading activity in Lennox International Inc. (NYSE:LII)
Insider buying is at its handiest when the primary stock in question has experienced transactions within the past 180 days. Over the last half-year time period, Lennox International Inc. (NYSE:LII) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Lennox International Inc. (NYSE:LII). These stocks are The Middleby Corporation (NASDAQ:MIDD), Graco Inc. (NYSE:GGG), 3D Systems Corporation (NYSE:DDD), Babcock & Wilcox Co (NYSE:BWC), and Crane Co. (NYSE:CR). This group of stocks belong to the diversified machinery industry and their market caps match LII’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| The Middleby Corporation (NASDAQ:MIDD) | 14 | 0 | 0 |
| Graco Inc. (NYSE:GGG) | 13 | 0 | 0 |
| 3D Systems Corporation (NYSE:DDD) | 21 | 0 | 0 |
| Babcock & Wilcox Co (NYSE:BWC) | 23 | 0 | 0 |
| Crane Co. (NYSE:CR) | 22 | 0 | 0 |
Using the returns demonstrated by Insider Monkey’s strategies, regular investors must always keep one eye on hedge fund and insider trading activity, and Lennox International Inc. (NYSE:LII) is no exception.
