Is Mondelez International Inc (NASDAQ:MDLZ) a good investment?
In the financial world, there are tons of indicators market participants can use to analyze publicly traded companies. Some 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 top picks of the elite money managers can outpace their index-focused peers by a superb margin (see just how much).
Equally as key, positive insider trading sentiment is another way to analyze the financial markets. Obviously, there are a number of motivations for a bullish insider to cut shares of his or her company, but just one, very clear reason why they would buy. Several empirical studies have demonstrated the useful potential of this strategy if you know what to do (learn more here).
Thus, let’s analyze the latest info surrounding Mondelez International Inc (NASDAQ:MDLZ).
How have hedgies been trading Mondelez International Inc (NASDAQ:MDLZ)?
At Q2’s end, a total of 61 of the hedge funds we track held long positions in this stock, a change of -12% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes substantially.
Out of the hedge funds we follow, Trian Partners, managed by Nelson Peltz, holds the biggest position in Mondelez International Inc (NASDAQ:MDLZ). Trian Partners has a $1.1682 billion position in the stock, comprising 23% of its 13F portfolio. Sitting at the No. 2 spot is Mason Hawkins of Southeastern Asset Management, with a $1.0989 billion position; the fund has 5.4% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Boykin Curry’s Eagle Capital Management, Ralph V. Whitworth’s Relational Investors and Daniel S. Och’s OZ Management.
Due to the fact Mondelez International Inc (NASDAQ:MDLZ) has faced declining interest from the smart money’s best and brightest, logic holds that there were a few funds that elected to cut their full holdings last quarter. Intriguingly, Bill Ackman’s Pershing Square said goodbye to the largest position of all the hedgies we key on, valued at close to $183 million in stock, and John Armitage of Egerton Capital Limited was right behind this move, as the fund said goodbye to about $113.4 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 8 funds last quarter.
Insider trading activity in Mondelez International Inc (NASDAQ:MDLZ)
Insider buying made by high-level executives is most useful when the company in focus has experienced transactions within the past six months. Over the last 180-day time frame, Mondelez International Inc (NASDAQ:MDLZ) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Mondelez International Inc (NASDAQ:MDLZ). These stocks are Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF), Tootsie Roll Industries, Inc. (NYSE:TR), Cosan Limited (USA) (NYSE:CZZ), and The Hershey Company (NYSE:HSY). All of these stocks are in the confectioners industry and their market caps match MDLZ’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF) | 0 | 0 | |
| Tootsie Roll Industries, Inc. (NYSE:TR) | 7 | 0 | 0 |
| Cosan Limited (USA) (NYSE:CZZ) | 9 | 0 | 0 |
| The Hershey Company (NYSE:HSY) | 22 | 0 | 0 |
Using the results shown by our analyses, regular investors must always pay attention to hedge fund and insider trading sentiment, and Mondelez International Inc (NASDAQ:MDLZ) applies perfectly to this mantra.
