Is TECO Energy, Inc. (NYSE:TE) a healthy stock for your portfolio? Investors who are in the know are in a bearish mood. The number of long hedge fund positions stayed the same which is a slightly negative development in our experience
At the moment, there are tons of indicators shareholders can use to watch the equity markets. A duo of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top hedge fund managers can outclass their index-focused peers by a very impressive margin (see just how much).
Just as integral, optimistic insider trading sentiment is another way to break down the stock market universe. Obviously, there are lots of reasons for an upper level exec to cut shares of his or her company, but only one, very clear reason why they would buy. Several academic studies have demonstrated the market-beating potential of this tactic if you know what to do (learn more here).
Keeping this in mind, it’s important to take a glance at the key action encompassing TECO Energy, Inc. (NYSE:TE).
What have hedge funds been doing with TECO Energy, Inc. (NYSE:TE)?
In preparation for this quarter, a total of 10 of the hedge funds we track were long in this stock, a change of 0% from the first quarter. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were increasing their stakes considerably.
Of the funds we track, Dreman Value Management, managed by David Dreman, holds the largest position in TECO Energy, Inc. (NYSE:TE). Dreman Value Management has a $23.3 million position in the stock, comprising 0.6% of its 13F portfolio. On Dreman Value Management’s heels is David Harding of Winton Capital Management, with a $12.3 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Some other hedge funds that are bullish include Israel Englander’s Millennium Management, Ken Griffin’s Citadel Investment Group and Joel Greenblatt’s Gotham Asset Management.
Since TECO Energy, Inc. (NYSE:TE) has witnessed a declination in interest from hedge fund managers, we can see that there exists a select few fund managers who sold off their positions entirely in Q1. Interestingly, Mike Vranos’s Ellington sold off the biggest investment of all the hedgies we monitor, valued at an estimated $0.7 million in stock., and Paul Tudor Jones of Tudor Investment Corp was right behind this move, as the fund said goodbye to about $0.3 million worth. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What have insiders been doing with TECO Energy, Inc. (NYSE:TE)?
Insider purchases made by high-level executives is most useful when the company in question has seen transactions within the past half-year. Over the last six-month time period, TECO Energy, Inc. (NYSE:TE) has experienced zero unique insiders buying, and 7 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to TECO Energy, Inc. (NYSE:TE). These stocks are Pepco Holdings, Inc. (NYSE:POM), ITC Holdings Corp. (NYSE:ITC), Centrais Eletricas Brasileiras SA (ADR) (NYSE:EBR), Companhia Paranaense de Energia (ADR) (NYSE:ELP), and Great Plains Energy Incorporated (NYSE:GXP). This group of stocks are in the electric utilities industry and their market caps are similar to TE’s market cap.
