Hedge Funds Are Dumping PVH Corp (PVH)

Is PVH Corp (NYSE:PVH) still a play on the continuing economic recovery?

To the average investor, there are many metrics investors can use to track Mr. Market. A duo of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite hedge fund managers can trounce the S&P 500 by a significant margin (see just how much).

Just as key, positive insider trading sentiment is another way to look at the world of equities. Obviously, there are many motivations for an insider to downsize shares of his or her company, but just one, very clear reason why they would behave bullishly. Various empirical studies have demonstrated the valuable potential of this tactic if shareholders know what to do (learn more here).

Thus, let’s examine the newest info for PVH Corp (NYSE:PVH).

What does the smart money think about PVH Corp (NYSE:PVH)?

In preparation for the third quarter, a total of 36 of the hedge funds we track were long in this stock, a change of -8% from the previous quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings meaningfully.

Out of the hedge funds we follow, Senator Investment Group, managed by Doug Silverman and Alexander Klabin, holds the most valuable position in PVH Corp (NYSE:PVH). Senator Investment Group has a $162.6 million position in the stock, comprising 2.5% of its 13F portfolio. On Senator Investment Group’s heels is Adage Capital Management, managed by Phill Gross and Robert Atchinson, which held a $146.7 million position; the fund has 0.5% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Robert Pitts’s Steadfast Capital Management, Glenn Fuhrman and John Phelan’s MSD Capital and Alexander Mitchell’s Scopus Asset Management.

Because PVH Corp (NYSE:PVH) has faced dropping sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few fund managers that slashed their positions entirely heading into Q2. It’s worth mentioning that Matt McLennan’s First Eagle Investment Management cut the largest stake of the “upper crust” of funds we key on, totaling about $43.4 million in stock, and Jeffrey Vinik of Vinik Asset Management was right behind this move, as the fund said goodbye to about $37.5 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest fell by 3 funds heading into Q2.

How have insiders been trading PVH Corp (NYSE:PVH)?

Bullish insider trading is particularly usable when the primary stock in question has experienced transactions within the past six months. Over the latest half-year time period, PVH Corp (NYSE:PVH) has seen zero unique insiders buying, and 10 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 PVH Corp (NYSE:PVH). These stocks are Ralph Lauren Corp (NYSE:RL), Hanesbrands Inc. (NYSE:HBI), Gildan Activewear Inc (USA) (NYSE:GIL), Under Armour Inc (NYSE:UA), and Lululemon Athletica inc. (NASDAQ:LULU). This group of stocks are the members of the textile – apparel clothing industry and their market caps match PVH’s market cap.

Using the results explained by Insider Monkey’s analyses, regular investors must always pay attention to hedge fund and insider trading activity, and PVH Corp (NYSE:PVH) shareholders fit into this picture quite nicely.

Discover how hedge fund piggybacking can benefit you