Walter Energy, Inc. (NYSE:WLT) investors: listen up.
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Just as key, positive insider trading sentiment is another way to look at the world of equities. Obviously, there are lots of stimuli for an insider to get rid of shares of his or her company, but only one, very clear reason why they would buy. Plenty of empirical studies have demonstrated the market-beating potential of this strategy if piggybackers know where to look (learn more here).
Now that that’s out of the way, it’s important to study the recent info surrounding Walter Energy, Inc. (NYSE:WLT).
What have hedge funds been doing with Walter Energy, Inc. (NYSE:WLT)?
Heading into Q3, a total of 21 of the hedge funds we track were bullish in this stock, a change of -19% from one quarter earlier. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their stakes meaningfully.
As Walter Energy, Inc. (NYSE:WLT) has faced dropping sentiment from the smart money’s best and brightest, it’s easy to see that there lies a certain “tier” of money managers that slashed their full holdings heading into Q2. Intriguingly, Dmitry Balyasny’s Balyasny Asset Management dumped the largest position of the 450+ funds we track, totaling an estimated $63.9 million in stock. Robert Bishop’s fund, Impala Asset Management, also sold off its stock, about $54.1 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 5 funds heading into Q2.
Insider trading activity in Walter Energy, Inc. (NYSE:WLT)
Legal insider trading, particularly when it’s bullish, is particularly usable when the primary stock in question has experienced transactions within the past 180 days. Over the last six-month time period, Walter Energy, Inc. (NYSE:WLT) has experienced 13 unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Walter Energy, Inc. (NYSE:WLT). These stocks are Alliance Resource Partners, L.P. (NASDAQ:ARLP), PVR Partners LP (NYSE:PVR), Stillwater Mining Company (NYSE:SWC), HudBay Minerals Inc Ord Shs (NYSE:HBM), and Alpha Natural Resources, Inc. (NYSE:ANR). This group of stocks belong to the industrial metals & minerals industry and their market caps match WLT’s market cap.
Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
Alliance Resource Partners, L.P. (NASDAQ:ARLP) | 5 | 0 | 1 |
PVR Partners LP (NYSE:PVR) | 4 | 5 | 4 |
Stillwater Mining Company (NYSE:SWC) | 16 | 1 | 7 |
HudBay Minerals Inc Ord Shs (NYSE:HBM) | 4 | 0 | 0 |
Alpha Natural Resources, Inc. (NYSE:ANR) | 23 | 0 | 0 |
Using the results demonstrated by Insider Monkey’s studies, regular investors should always keep one eye on hedge fund and insider trading activity, and Walter Energy, Inc. (NYSE:WLT) shareholders fit into this picture quite nicely.