Lancaster Colony Corp. (NASDAQ:LANC) investors: listen up.
In today’s marketplace, there are tons of methods shareholders can use to track Mr. Market. Two of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite money managers can outpace the market by a superb margin (see just how much).
Just as useful, bullish insider trading sentiment is a second way to look at the marketplace. As the old adage goes: there are many incentives for a corporate insider to drop shares of his or her company, but just one, very clear reason why they would initiate a purchase. Many academic studies have demonstrated the impressive potential of this method if “monkeys” understand what to do (learn more here).
Keeping this in mind, we’re going to examine the latest info for Lancaster Colony Corp. (NASDAQ:LANC).
How have hedgies been trading Lancaster Colony Corp. (NASDAQ:LANC)?
At the end of the second quarter, a total of 12 of the hedge funds we track were long in this stock, a change of 20% from the previous quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were boosting their stakes considerably.
According to our 13F database, Chuck Royce’s Royce & Associates had the most valuable position in Lancaster Colony Corp. (NASDAQ:LANC), worth close to $88 million, accounting for 0.3% of its total 13F portfolio. Sitting at the No. 2 spot is Yacktman Asset Management, managed by Donald Yacktman, which held a $41.5 million position; 0.2% of its 13F portfolio is allocated to the stock. Other hedgies with similar optimism include Jim Simons’s Renaissance Technologies, Cliff Asness’s AQR Capital Management and Roger Keith Long’s Otter Creek Management.
With a general bullishness amongst the titans, particular hedge funds have been driving this bullishness. Royce & Associates, managed by Chuck Royce, initiated the most outsized position in Lancaster Colony Corp. (NASDAQ:LANC). Royce & Associates had 88 million invested in the company at the end of the quarter. Donald Yacktman’s Yacktman Asset Management also initiated a $41.5 million position during the quarter. The other funds with brand new LANC positions are Jim Simons’s Renaissance Technologies, Cliff Asness’s AQR Capital Management, and Roger Keith Long’s Otter Creek Management.
How are insiders trading Lancaster Colony Corp. (NASDAQ:LANC)?
Bullish insider trading is particularly usable when the company we’re looking at has experienced transactions within the past 180 days. Over the last half-year time period, Lancaster Colony Corp. (NASDAQ:LANC) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Lancaster Colony Corp. (NASDAQ:LANC). These stocks are Dole Food Company, Inc. (NYSE:DOLE), Cal-Maine Foods Inc (NASDAQ:CALM), Sanderson Farms, Inc. (NASDAQ:SAFM), Post Holdings Inc (NYSE:POST), and The WhiteWave Foods Co (NYSE:WWAV). This group of stocks are in the food – major diversified industry and their market caps resemble LANC’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Dole Food Company, Inc. (NYSE:DOLE) | 19 | 0 | 0 |
| Cal-Maine Foods Inc (NASDAQ:CALM) | 10 | 0 | 0 |
| Sanderson Farms, Inc. (NASDAQ:SAFM) | 19 | 0 | 0 |
| Post Holdings Inc (NYSE:POST) | 21 | 0 | 0 |
| The WhiteWave Foods Co (NYSE:WWAV) | 18 | 0 | 0 |
Using the results explained by our strategies, average investors should always pay attention to hedge fund and insider trading activity, and Lancaster Colony Corp. (NASDAQ:LANC) applies perfectly to this mantra.
