In the 21st century investor’s toolkit, there are plenty of gauges market participants can use to analyze stocks. Two of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best hedge fund managers can beat the market by a solid margin (see just how much).
Just as crucial, positive insider trading activity is a second way to analyze the world of equities. Obviously, there are plenty of incentives for an upper level exec to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Various empirical studies have demonstrated the impressive potential of this method if shareholders understand what to do (learn more here).
What’s more, let’s discuss the recent info surrounding Monro Muffler Brake Inc (NASDAQ:MNRO).
How are hedge funds trading Monro Muffler Brake Inc (NASDAQ:MNRO)?
In preparation for the third quarter, a total of 7 of the hedge funds we track were bullish in this stock, a change of -22% from the first quarter. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were increasing their stakes significantly.
According to our 13F database, Mariko Gordon’s Daruma Asset Management had the largest position in Monro Muffler Brake Inc (NASDAQ:MNRO), worth close to $64.3 million, accounting for 3.1% of its total 13F portfolio. Sitting at the No. 2 spot is Royce & Associates, managed by Chuck Royce, which held a $42.5 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other hedge funds with similar optimism include Charles Akre’s Akre Capital Management, Mark N. Diker’s Diker Management and Mario Gabelli’s GAMCO Investors.
Since Monro Muffler Brake Inc (NASDAQ:MNRO) has experienced declining interest from the smart money’s best and brightest, logic holds that there was a specific group of fund managers who sold off their full holdings heading into Q2. Intriguingly, Ken Grossman and Glen Schneider’s SG Capital Management said goodbye to the biggest stake of the “upper crust” of funds we track, comprising close to $4.6 million in stock. Noam Gottesman’s fund, GLG Partners, also sold off its stock, about $2.3 million worth. These bearish behaviors are important to note, as total hedge fund interest was cut by 2 funds heading into Q2.
Insider trading activity in Monro Muffler Brake Inc (NASDAQ:MNRO)
Insider buying made by high-level executives is at its handiest when the company in focus has seen transactions within the past half-year. Over the latest 180-day time frame, Monro Muffler Brake Inc (NASDAQ:MNRO) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Monro Muffler Brake Inc (NASDAQ:MNRO). These stocks are Standard Motor Products, Inc. (NYSE:SMP), Tenneco Inc (NYSE:TEN), Westport Innovations Inc. (USA) (NASDAQ:WPRT), American Axle & Manufact. Holdings, Inc. (NYSE:AXL), and Dorman Products Inc. (NASDAQ:DORM). This group of stocks are in the auto parts industry and their market caps are similar to MNRO’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Standard Motor Products, Inc. (NYSE:SMP) | 12 | 0 | 0 |
| Tenneco Inc (NYSE:TEN) | 20 | 0 | 0 |
| Westport Innovations Inc. (USA) (NASDAQ:WPRT) | 11 | 0 | 0 |
| American Axle & Manufact. Holdings, Inc. (NYSE:AXL) | 22 | 0 | 0 |
| Dorman Products Inc. (NASDAQ:DORM) | 10 | 0 | 0 |
Using the results shown by Insider Monkey’s tactics, average investors must always pay attention to hedge fund and insider trading activity, and Monro Muffler Brake Inc (NASDAQ:MNRO) shareholders fit into this picture quite nicely.
