LTC Properties Inc (LTC): Insiders Aren’t Crazy About It

Is LTC Properties Inc (NYSE:LTC) a buy here? Hedge funds are getting more bullish. The number of bullish hedge fund positions moved up by 2 recently.

In the financial world, there are plenty of methods investors can use to watch their holdings. A couple of the most innovative 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 top hedge fund managers can beat their index-focused peers by a healthy margin (see just how much).

Just as integral, optimistic insider trading sentiment is a second way to parse down the investments you’re interested in. There are a number of stimuli for an upper level exec to sell shares of his or her company, but just one, very obvious reason why they would buy. Plenty of academic studies have demonstrated the valuable potential of this method if shareholders understand what to do (learn more here).

Keeping this in mind, we’re going to take a peek at the key action regarding LTC Properties Inc (NYSE:LTC).

How have hedgies been trading LTC Properties Inc (NYSE:LTC)?

Heading into Q2, a total of 8 of the hedge funds we track held long positions in this stock, a change of 33% from one quarter earlier. With hedge funds’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes considerably.

Of the funds we track, AQR Capital Management, managed by Cliff Asness, holds the largest position in LTC Properties Inc (NYSE:LTC). AQR Capital Management has a $11.1 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On AQR Capital Management’s heels is Jim Simons of Renaissance Technologies, with a $3.5 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other peers with similar optimism include Israel Englander’s Millennium Management, Matthew Tewksbury’s Stevens Capital Management and John Overdeck and David Siegel’s Two Sigma Advisors.

Consequently, key hedge funds were breaking ground themselves. Stevens Capital Management, managed by Matthew Tewksbury, assembled the largest position in LTC Properties Inc (NYSE:LTC). Stevens Capital Management had 1 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also initiated a $1 million position during the quarter. The other funds with brand new LTC positions are D. E. Shaw’s D E Shaw and Matthew Hulsizer’s PEAK6 Capital Management.

How are insiders trading LTC Properties Inc (NYSE:LTC)?

Insider trading activity, especially when it’s bullish, is particularly usable when the primary stock in question has seen transactions within the past six months. Over the latest six-month time period, LTC Properties Inc (NYSE:LTC) has experienced zero unique insiders buying, and 5 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to LTC Properties Inc (NYSE:LTC). These stocks are Healthcare Realty Trust Inc (NYSE:HR), Medical Properties Trust, Inc. (NYSE:MPW), Universal Health Realty Income Trust (NYSE:UHT), National Health Investors Inc (NYSE:NHI), and Sabra Health Care REIT Inc (NASDAQ:SBRA). This group of stocks belong to the reit – healthcare facilities industry and their market caps are closest to LTC’s market cap.

With the returns demonstrated by Insider Monkey’s research, retail investors should always watch hedge fund and insider trading activity, and LTC Properties Inc (NYSE:LTC) shareholders fit into this picture quite nicely.

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