This PulteGroup, Inc. (NYSE:PHM) data suggests you may want to take a look at the stock.
In the 21st century investor’s toolkit, there are tons of gauges investors can use to track stocks. Two of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top hedge fund managers can trounce the market by a significant margin (see just how much).
Equally as useful, bullish insider trading activity is a second way to analyze the investments you’re interested in. Just as you’d expect, there are a variety of stimuli for a bullish insider to drop shares of his or her company, but only one, very clear reason why they would initiate a purchase. Several empirical studies have demonstrated the market-beating potential of this tactic if “monkeys” understand where to look (learn more here).
Furthermore, it’s important to analyze the latest info for PulteGroup, Inc. (NYSE:PHM).
Hedge fund activity in PulteGroup, Inc. (NYSE:PHM)
In preparation for the third quarter, a total of 37 of the hedge funds we track were long in this stock, a change of 28% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their holdings significantly.
According to our 13F database, Ken Heebner’s Capital Growth Management had the largest position in PulteGroup, Inc. (NYSE:PHM), worth close to $182.5 million, comprising 4.8% of its total 13F portfolio. Coming in second is Crispin Odey of Odey Asset Management Group, with a $96.1 million position; 3.8% of its 13F portfolio is allocated to the company. Some other hedge funds that hold long positions include Cliff Asness’s AQR Capital Management, Louis Navellier’s Navellier & Associates and Jim Simons’s Renaissance Technologies.
Now, specific money managers have jumped into PulteGroup, Inc. (NYSE:PHM) headfirst. Capital Growth Management, managed by Ken Heebner, assembled the most valuable position in PulteGroup, Inc. (NYSE:PHM). Capital Growth Management had 182.5 million invested in the company at the end of the quarter. Crispin Odey’s Odey Asset Management Group also initiated a $96.1 million position during the quarter. The other funds with brand new PHM positions are Cliff Asness’s AQR Capital Management, Louis Navellier’s Navellier & Associates, and Jim Simons’s Renaissance Technologies.
What have insiders been doing with PulteGroup, Inc. (NYSE:PHM)?
Insider buying made by high-level executives is most useful when the company in focus has experienced transactions within the past half-year. Over the latest six-month time period, PulteGroup, Inc. (NYSE:PHM) has experienced 3 unique insiders buying, and 9 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 PulteGroup, Inc. (NYSE:PHM). These stocks are The Ryland Group, Inc. (NYSE:RYL), NVR, Inc. (NYSE:NVR), Toll Brothers Inc (NYSE:TOL), Lennar Corporation (NYSE:LEN), and D.R. Horton, Inc. (NYSE:DHI). This group of stocks are the members of the residential construction industry and their market caps match PHM’s market cap.
