Hedge Funds Aren’t Crazy About Covanta Holding Corporation (CVA) Anymore

Covanta Holding Corporation (NYSE:CVA) has experienced a decrease in support from the world’s most elite money managers lately.

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Now, we’re going to take a look at the recent action surrounding Covanta Holding Corporation (NYSE:CVA).

What have hedge funds been doing with Covanta Holding Corporation (NYSE:CVA)?

At Q1’s end, a total of 19 of the hedge funds we track were long in this stock, a change of -17% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their stakes significantly.

According to our comprehensive database, Third Avenue Management, managed by Martin Whitman, holds the largest position in Covanta Holding Corporation (NYSE:CVA). Third Avenue Management has a $158.9 million position in the stock, comprising 3.1% of its 13F portfolio. The second largest stake is held by David Cohen and Harold Levy of Iridian Asset Management, with a $67.5 million position; 1% of its 13F portfolio is allocated to the stock. Remaining peers that hold long positions include Glenn J. Krevlin’s Glenhill Advisors, John A. Levin’s Levin Capital Strategies and Eliav Assouline and Marc Andersen’s Axial Capital.

Due to the fact that Covanta Holding Corporation (NYSE:CVA) has faced falling interest from the smart money, we can see that there exists a select few money managers that slashed their full holdings at the end of the first quarter. Interestingly, Edward Goodnow’s Goodnow Investment Group said goodbye to the biggest stake of all the hedgies we track, worth close to $4.9 million in stock.. Philip Hempleman’s fund, Ardsley Partners, also cut its stock, about $2.3 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 4 funds at the end of the first quarter.

What have insiders been doing with Covanta Holding Corporation (NYSE:CVA)?

Insider purchases made by high-level executives is most useful when the company in focus has experienced transactions within the past 180 days. Over the last six-month time frame, Covanta Holding Corporation (NYSE:CVA) has experienced zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Covanta Holding Corporation (NYSE:CVA). These stocks are Heckmann Corporation (NYSE:HEK), Waste Connections, Inc. (NYSE:WCN), Clean Harbors Inc (NYSE:CLH), Darling International Inc. (NYSE:DAR), and Progressive Waste Solutions Ltd (USA) (NYSE:BIN). This group of stocks are the members of the waste management industry and their market caps match CVA’s market cap.

With the returns demonstrated by our research, everyday investors should always watch hedge fund and insider trading activity, and Covanta Holding Corporation (NYSE:CVA) is no exception.

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