Newpark Resources Inc (NYSE:NR) investors should be aware of an increase in hedge fund sentiment in recent months.
In today’s marketplace, there are many metrics market participants can use to analyze publicly traded companies. A duo of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top money managers can outclass their index-focused peers by a superb amount (see just how much).
Equally as beneficial, bullish insider trading activity is a second way to parse down the world of equities. There are a number of incentives for an upper level exec to get rid of 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 method if “monkeys” know where to look (learn more here).
With these “truths” under our belt, it’s important to take a glance at the latest action surrounding Newpark Resources Inc (NYSE:NR).
What have hedge funds been doing with Newpark Resources Inc (NYSE:NR)?
At the end of the fourth quarter, a total of 8 of the hedge funds we track held long positions in this stock, a change of 60% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their holdings significantly.
According to our comprehensive database, Chuck Royce’s Royce & Associates had the largest position in Newpark Resources Inc (NYSE:NR), worth close to $9.1 million, comprising less than 0.1%% of its total 13F portfolio. Coming in second is Prescott Group Capital Management, managed by Phil Frohlich, which held a $0.9 million position; 0.2% of its 13F portfolio is allocated to the stock. Remaining hedgies that are bullish include Neil Chriss’s Hutchin Hill Capital, Cliff Asness’s AQR Capital Management and Mike Vranos’s Ellington.
Consequently, key hedge funds have jumped into Newpark Resources Inc (NYSE:NR) headfirst. Hutchin Hill Capital, managed by Neil Chriss, established the most outsized position in Newpark Resources Inc (NYSE:NR). Hutchin Hill Capital had 0.6 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $0.2 million investment in the stock during the quarter. The only other fund with a new position in the stock is D. E. Shaw’s D E Shaw.
What do corporate executives and insiders think about Newpark Resources Inc (NYSE:NR)?
Bullish insider trading is best served when the company in focus has experienced transactions within the past 180 days. Over the latest 180-day time frame, Newpark Resources Inc (NYSE:NR) has experienced zero unique insiders buying, and 2 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Newpark Resources Inc (NYSE:NR). These stocks are C&J Energy Services Inc (NYSE:CJES), Tesco Corporation (USA) (NASDAQ:TESO), Basic Energy Services, Inc (NYSE:BAS), GulfMark Offshore, Inc. (NYSE:GLF), and TETRA Technologies, Inc. (NYSE:TTI). This group of stocks are in the oil & gas equipment & services industry and their market caps match NR’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| C&J Energy Services Inc (NYSE:CJES) | 9 | 0 | 3 |
| Tesco Corporation (USA) (NASDAQ:TESO) | 13 | 0 | 2 |
| Basic Energy Services, Inc (NYSE:BAS) | 9 | 3 | 3 |
| GulfMark Offshore, Inc. (NYSE:GLF) | 9 | 0 | 2 |
| TETRA Technologies, Inc. (NYSE:TTI) | 13 | 7 | 0 |
With the returns shown by Insider Monkey’s research, everyday investors must always pay attention to hedge fund and insider trading activity, and Newpark Resources Inc (NYSE:NR) is an important part of this process.
