MDU Resources Group Inc (MDU): Insiders Aren’t Crazy About It

MDU Resources Group Inc (NYSE:MDU) was in 10 hedge funds’ portfolio at the end of March. MDU has experienced an increase in support from the world’s most elite money managers of late. There were 9 hedge funds in our database with MDU holdings at the end of the previous quarter.

In the 21st century investor’s toolkit, there are tons of gauges shareholders can use to watch Mr. Market. A couple of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top fund managers can beat the S&P 500 by a healthy amount (see just how much).

Just as beneficial, positive insider trading sentiment is another way to parse down the investments you’re interested in. As the old adage goes: there are plenty of incentives for a bullish insider to drop shares of his or her company, but only one, very clear reason why they would initiate a purchase. Several academic studies have demonstrated the useful potential of this strategy if piggybackers understand where to look (learn more here).

With all of this in mind, let’s take a gander at the key action regarding MDU Resources Group Inc (NYSE:MDU).

How are hedge funds trading MDU Resources Group Inc (NYSE:MDU)?

In preparation for this quarter, a total of 10 of the hedge funds we track were bullish in this stock, a change of 11% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their holdings meaningfully.

According to our comprehensive database, Millennium Management, managed by Israel Englander, holds the most valuable position in MDU Resources Group Inc (NYSE:MDU). Millennium Management has a $21.8 million position in the stock, comprising 0.1% of its 13F portfolio. On Millennium Management’s heels is Ken Griffin of Citadel Investment Group, with a $16.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include Jim Simons’s Renaissance Technologies, Cliff Asness’s AQR Capital Management and Steven Cohen’s SAC Capital Advisors.

With a general bullishness amongst the heavyweights, specific money managers were leading the bulls’ herd. Renaissance Technologies, managed by Jim Simons, assembled the biggest position in MDU Resources Group Inc (NYSE:MDU). Renaissance Technologies had 8.7 million invested in the company at the end of the quarter. SAC Subsidiary’s CR Intrinsic Investors also made a $0.6 million investment in the stock during the quarter. The only other fund with a new position in the stock is Matthew Hulsizer’s PEAK6 Capital Management.

What do corporate executives and insiders think about MDU Resources Group Inc (NYSE:MDU)?

Insider buying is most useful when the primary stock in question has seen transactions within the past 180 days. Over the last 180-day time frame, MDU Resources Group Inc (NYSE:MDU) has seen zero unique insiders buying, and 4 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to MDU Resources Group Inc (NYSE:MDU). These stocks are RPC, Inc. (NYSE:RES), Core Laboratories N.V. (NYSE:CLB), Dril-Quip, Inc. (NYSE:DRQ), Superior Energy Services, Inc. (NYSE:SPN), and Oil States International, Inc. (NYSE:OIS). This group of stocks are in the oil & gas equipment & services industry and their market caps match MDU’s market cap.

With the returns exhibited by our tactics, everyday investors should always monitor hedge fund and insider trading activity, and MDU Resources Group Inc (NYSE:MDU) applies perfectly to this mantra.

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