Joy Global Inc. (NYSE:JOY) investors should be aware of an increase in hedge fund sentiment recently.
In the financial world, there are many indicators investors can use to watch stocks. A couple of the best are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best hedge fund managers can outclass the broader indices by a superb amount (see just how much).
Equally as important, positive insider trading sentiment is another way to parse down the stock market universe. There are a variety of incentives for a corporate insider to downsize shares of his or her company, but only one, very simple reason why they would buy. Plenty of academic studies have demonstrated the impressive potential of this tactic if piggybackers know where to look (learn more here).
With all of this in mind, let’s take a peek at the key action encompassing Joy Global Inc. (NYSE:JOY).
What have hedge funds been doing with Joy Global Inc. (NYSE:JOY)?
In preparation for this quarter, a total of 31 of the hedge funds we track held long positions in this stock, a change of 7% from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were increasing their stakes significantly.
According to our comprehensive database, David Cohen and Harold Levy’s Iridian Asset Management had the biggest position in Joy Global Inc. (NYSE:JOY), worth close to $80.7 million, accounting for 1.2% of its total 13F portfolio. On Iridian Asset Management’s heels is D. E. Shaw of D E Shaw, with a $28.2 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other peers that are bullish include Philippe Laffont’s Coatue Management, Rob Butts and Josh Clark’s Southpoint Capital Advisors and Ken Griffin’s Citadel Investment Group.
With a general bullishness amongst the heavyweights, some big names have jumped into Joy Global Inc. (NYSE:JOY) headfirst. Iridian Asset Management, managed by David Cohen and Harold Levy, assembled the most valuable position in Joy Global Inc. (NYSE:JOY). Iridian Asset Management had 80.7 million invested in the company at the end of the quarter. Rob Butts and Josh Clark’s Southpoint Capital Advisors also initiated a $25.6 million position during the quarter. The following funds were also among the new JOY investors: Israel Englander’s Millennium Management, Joel Greenblatt’s Gotham Asset Management, and David Keidan’s Buckingham Capital Management.
How are insiders trading Joy Global Inc. (NYSE:JOY)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company we’re looking at has seen transactions within the past six months. Over the latest 180-day time frame, Joy Global Inc. (NYSE:JOY) has seen zero unique insiders buying, and 2 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Joy Global Inc. (NYSE:JOY). These stocks are Deere & Company (NYSE:DE), Manitowoc Company, Inc. (NYSE:MTW), Terex Corporation (NYSE:TEX), CNH Global NV (ADR) (NYSE:CNH), and AGCO Corporation (NYSE:AGCO). This group of stocks are in the farm & construction machinery industry and their market caps are similar to JOY’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Deere & Company (NYSE:DE) | 33 | 0 | 8 |
| Manitowoc Company, Inc. (NYSE:MTW) | 23 | 0 | 7 |
| Terex Corporation (NYSE:TEX) | 30 | 2 | 8 |
| CNH Global NV (ADR) (NYSE:CNH) | 23 | 0 | 0 |
| AGCO Corporation (NYSE:AGCO) | 25 | 2 | 5 |
With the returns exhibited by the aforementioned research, everyday investors must always watch hedge fund and insider trading activity, and Joy Global Inc. (NYSE:JOY) applies perfectly to this mantra.
