Is Lennox International Inc. (NYSE:LII) a buy, sell, or hold? The smart money is becoming more confident. The number of bullish hedge fund positions advanced by 3 lately.
In the financial world, there are dozens of methods investors can use to track publicly traded companies. Two of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite fund managers can trounce their index-focused peers by a healthy amount (see just how much).
Just as key, bullish insider trading sentiment is another way to parse down the world of equities. Obviously, there are plenty of motivations for a corporate insider to drop shares of his or her company, but just one, very clear reason why they would behave bullishly. Various empirical studies have demonstrated the impressive potential of this tactic if “monkeys” understand where to look (learn more here).
Consequently, let’s take a look at the recent action surrounding Lennox International Inc. (NYSE:LII).
How have hedgies been trading Lennox International Inc. (NYSE:LII)?
At year’s end, a total of 15 of the hedge funds we track were long in this stock, a change of 25% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings meaningfully.
According to our comprehensive database, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the most valuable position in Lennox International Inc. (NYSE:LII). Adage Capital Management has a $54 million position in the stock, comprising 0.2% of its 13F portfolio. The second largest stake is held by Edgar Wachenheim of Greenhaven Associates, with a $22 million position; the fund has 0.7% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Tom Gayner’s Markel Gayner Asset Management, Jim Simons’s Renaissance Technologies and Israel Englander’s Millennium Management.
With a general bullishness amongst the heavyweights, specific money managers have been driving this bullishness. Renaissance Technologies, managed by Jim Simons, initiated the largest position in Lennox International Inc. (NYSE:LII). Renaissance Technologies had 5 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $5 million position during the quarter. The following funds were also among the new LII investors: Ken Griffin’s Citadel Investment Group, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Ken Gray and Steve Walsh’s Bryn Mawr Capital.
What do corporate executives and insiders think about Lennox International Inc. (NYSE:LII)?
Bullish insider trading is particularly usable when the company in focus has seen transactions within the past 180 days. Over the last 180-day time period, Lennox International Inc. (NYSE:LII) has experienced zero unique insiders purchasing, and 11 insider sales (see the details of insider trades here).
With the results shown by Insider Monkey’s studies, retail investors must always keep an eye on hedge fund and insider trading activity, and Lennox International Inc. (NYSE:LII) is an important part of this process.
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