Is KBR, Inc. (NYSE:KBR) a buy, sell, or hold? The smart money is getting less bullish. The number of long hedge fund positions fell by 14 in recent months.
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Now, it’s important to take a look at the latest action regarding KBR, Inc. (NYSE:KBR).
How have hedgies been trading KBR, Inc. (NYSE:KBR)?
At the end of the fourth quarter, a total of 14 of the hedge funds we track held long positions in this stock, a change of -50% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their stakes significantly.
When looking at the hedgies we track, East Side Capital (RR Partners), managed by Steven Richman, holds the biggest position in KBR, Inc. (NYSE:KBR). East Side Capital (RR Partners) has a $115 million position in the stock, comprising 6.5% of its 13F portfolio. On East Side Capital (RR Partners)’s heels is Platinum Asset Management, managed by Kerr Neilson, which held a $76 million position; the fund has 1.7% of its 13F portfolio invested in the stock. Some other hedge funds that hold long positions include Cliff Asness’s AQR Capital Management, Chuck Royce’s Royce & Associates and John Overdeck and David Siegel’s Two Sigma Advisors.
Judging by the fact that KBR, Inc. (NYSE:KBR) has experienced bearish sentiment from the smart money, logic holds that there was a specific group of hedgies who sold off their full holdings in Q4. It’s worth mentioning that Steven Cohen’s SAC Capital Advisors sold off the largest position of all the hedgies we monitor, worth about $33 million in stock., and Malcolm Fairbairn of Ascend Capital was right behind this move, as the fund dumped about $16 million worth. These transactions are interesting, as total hedge fund interest was cut by 14 funds in Q4.
How have insiders been trading KBR, Inc. (NYSE:KBR)?
Insider buying is particularly usable when the company we’re looking at has seen transactions within the past six months. Over the latest half-year time frame, KBR, Inc. (NYSE:KBR) has experienced zero unique insiders purchasing, 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 KBR, Inc. (NYSE:KBR). These stocks are SAIC, Inc. (NYSE:SAI), URS Corp (NYSE:URS), AECOM Technology Corp (NYSE:ACM), The Shaw Group Inc. (NYSE:SHAW), and Jacobs Engineering Group Inc (NYSE:JEC). This group of stocks are in the technical services industry and their market caps resemble KBR’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| SAIC, Inc. (NYSE:SAI) | 18 | 0 | 0 |
| URS Corp (NYSE:URS) | 17 | 0 | 5 |
| AECOM Technology Corp (NYSE:ACM) | 11 | 0 | 11 |
| The Shaw Group Inc. (NYSE:SHAW) | 25 | 0 | 8 |
| Jacobs Engineering Group Inc (NYSE:JEC) | 20 | 0 | 3 |
With the results shown by our time-tested strategies, retail investors should always watch hedge fund and insider trading activity, and KBR, Inc. (NYSE:KBR) applies perfectly to this mantra.
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