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Just as key, optimistic insider trading sentiment is a second way to look at the stock market universe. Just as you’d expect, there are plenty of motivations for a bullish insider to drop shares of his or her company, but just one, very obvious reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this method if investors understand what to do (learn more here).
Keeping this in mind, let’s examine the latest info surrounding A. Schulman Inc (NASDAQ:SHLM).
How have hedgies been trading A. Schulman Inc (NASDAQ:SHLM)?
In preparation for the third quarter, a total of 11 of the hedge funds we track were long in this stock, a change of -8% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their holdings significantly.
Due to the fact A. Schulman Inc (NASDAQ:SHLM) has witnessed a fall in interest from the smart money’s best and brightest, we can see that there were a few money managers that slashed their full holdings at the end of the second quarter. Intriguingly, Jim Simons’s Renaissance Technologies cut the biggest stake of the 450+ funds we key on, comprising an estimated $1.4 million in stock. D. E. Shaw’s fund, D E Shaw, also dropped its stock, about $0.7 million worth. These moves are interesting, as total hedge fund interest was cut by 1 funds at the end of the second quarter.
How are insiders trading A. Schulman Inc (NASDAQ:SHLM)?
Bullish insider trading is at its handiest when the company in question has seen transactions within the past 180 days. Over the last 180-day time period, A. Schulman Inc (NASDAQ:SHLM) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to A. Schulman Inc (NASDAQ:SHLM). These stocks are Solazyme Inc (NASDAQ:SZYM), FutureFuel Corp. (NYSE:FF), Rentech, Inc. (NYSEAMEX:RTK), Balchem Corporation (NASDAQ:BCPC), and LSB Industries, Inc. (NYSE:LXU). All of these stocks are in the chemicals – major diversified industry and their market caps are similar to SHLM’s market cap.
