Is Sempra Energy (NYSE:SRE) a good investment?
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Just as necessary, positive insider trading activity is a second way to analyze the world of equities. Obviously, there are plenty of stimuli for an executive to downsize shares of his or her company, but just one, very clear reason why they would initiate a purchase. Various academic studies have demonstrated the valuable potential of this tactic if you know where to look (learn more here).
Keeping this in mind, it’s important to analyze the recent info surrounding Sempra Energy (NYSE:SRE).
Hedge fund activity in Sempra Energy (NYSE:SRE)
At the end of the second quarter, a total of 21 of the hedge funds we track were long in this stock, a change of 40% from the first quarter. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes substantially.
As industrywide interest increased, certain money managers have jumped into Sempra Energy (NYSE:SRE) headfirst. Millennium Management, managed by Israel Englander, established the most outsized position in Sempra Energy (NYSE:SRE). Millennium Management had 93.8 million invested in the company at the end of the quarter. Louis Navellier’s Navellier & Associates also initiated a $49 million position during the quarter. The following funds were also among the new SRE investors: John A. Levin’s Levin Capital Strategies, Phill Gross and Robert Atchinson’s Adage Capital Management, and David Harding’s Winton Capital Management.
Insider trading activity in Sempra Energy (NYSE:SRE)
Insider buying made by high-level executives is most useful when the company in focus has experienced transactions within the past half-year. Over the last 180-day time frame, Sempra Energy (NYSE:SRE) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to Sempra Energy (NYSE:SRE). These stocks are Western Gas Equity Partners LP (NYSE:WGP), National Grid plc (ADR) (NYSE:NGG), ONEOK, Inc. (NYSE:OKE), EQT Corporation (NYSE:EQT), and TransCanada Corporation (USA) (NYSE:TRP). All of these stocks are in the gas utilities industry and their market caps are similar to SRE’s market cap.
