Sanchez Energy Corp (NYSE:SN) investors should be aware of a decrease in enthusiasm from smart money of late.
At the moment, there are tons of metrics investors can use to analyze the equity markets. Some of the best are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite money managers can outclass the S&P 500 by a very impressive amount (see just how much).
Equally as key, bullish insider trading activity is a second way to parse down the financial markets. As the old adage goes: there are plenty of reasons for an executive to cut shares of his or her company, but just one, very simple reason why they would buy. Plenty of empirical studies have demonstrated the impressive potential of this tactic if “monkeys” know what to do (learn more here).
Consequently, we’re going to take a glance at the latest action regarding Sanchez Energy Corp (NYSE:SN).
Hedge fund activity in Sanchez Energy Corp (NYSE:SN)
At Q1’s end, a total of 7 of the hedge funds we track were long in this stock, a change of -13% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their stakes substantially.
When looking at the hedgies we track, Ken Griffin’s Citadel Investment Group had the biggest position in Sanchez Energy Corp (NYSE:SN), worth close to $7.9 million, accounting for less than 0.1%% of its total 13F portfolio. The second largest stake is held by PEAK6 Capital Management, managed by Matthew Hulsizer, which held a $2 million call position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedge funds that are bullish include John Overdeck and David Siegel’s Two Sigma Advisors, Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners and Paul Tudor Jones’s Tudor Investment Corp.
Since Sanchez Energy Corp (NYSE:SN) has witnessed falling interest from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of hedge funds that decided to sell off their positions entirely at the end of the first quarter. At the top of the heap, Steven Cohen’s SAC Capital Advisors cut the largest investment of all the hedgies we track, totaling an estimated $6.8 million in stock., and Richard Schimel of Diamondback Capital was right behind this move, as the fund said goodbye to about $3.6 million worth. These transactions are interesting, as total hedge fund interest dropped by 1 funds at the end of the first quarter.
How have insiders been trading Sanchez Energy Corp (NYSE:SN)?
Bullish insider trading is best served when the primary stock in question has experienced transactions within the past 180 days. Over the latest half-year time period, Sanchez Energy Corp (NYSE:SN) has experienced 1 unique insiders buying, and 3 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Sanchez Energy Corp (NYSE:SN). These stocks are Delek Logistics Partners LP (NYSE:DKL), Swift Energy Company (NYSE:SFY), Chesapeake Granite Wash Trust (NYSE:CHKR), Resolute Energy Corp (NYSE:REN), and San Juan Basin Royalty Trust (NYSE:SJT). All of these stocks are in the independent oil & gas industry and their market caps resemble SN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Delek Logistics Partners LP (NYSE:DKL) | 1 | 0 | 0 |
| Swift Energy Company (NYSE:SFY) | 15 | 3 | 0 |
| Chesapeake Granite Wash Trust (NYSE:CHKR) | 4 | 0 | 0 |
| Resolute Energy Corp (NYSE:REN) | 12 | 1 | 4 |
| San Juan Basin Royalty Trust (NYSE:SJT) | 5 | 0 | 0 |
With the returns shown by Insider Monkey’s studies, everyday investors must always watch hedge fund and insider trading sentiment, and Sanchez Energy Corp (NYSE:SN) is an important part of this process.
