Owens-Illinois Inc (OI): Insiders Are Buying, Should You?

Owens-Illinois Inc (NYSE:OI) investors: listen up.

To the average investor, there are tons of indicators investors can use to watch stocks. Some of the most useful are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best money managers can trounce the broader indices by a significant amount (see just how much).

Just as key, bullish insider trading sentiment is another way to look at the marketplace. Just as you’d expect, there are lots of motivations for a bullish insider to get rid of shares of his or her company, but only one, very simple reason why they would buy. Various academic studies have demonstrated the useful potential of this method if shareholders know what to do (learn more here).

Keeping this in mind, we’re going to study the newest info surrounding Owens-Illinois Inc (NYSE:OI).

How have hedgies been trading Owens-Illinois Inc (NYSE:OI)?

In preparation for the third quarter, a total of 27 of the hedge funds we track were bullish in this stock, a change of -10% from the previous quarter. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their stakes significantly.

When using filings from the hedgies we track, Atlantic Investment Management, managed by Alexander Roepers, holds the most valuable position in Owens-Illinois Inc (NYSE:OI). Atlantic Investment Management has a $225.8 million position in the stock, comprising 21% of its 13F portfolio. Coming in second is First Pacific Advisors LLC, managed by Robert Rodriguez and Steven Romick, which held a $170.6 million position; the fund has 1.8% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions include Andrew J. M. Spokes’s Farallon Capital, John Osterweis’s Osterweis Capital Management and Cliff Asness’s AQR Capital Management.

As Owens-Illinois Inc (NYSE:OI) has witnessed dropping sentiment from the entirety of the hedge funds we track, we can see that there exists a select few funds that decided to sell off their full holdings at the end of the second quarter. Interestingly, Philippe Jabre’s Jabre Capital Partners dumped the biggest stake of the “upper crust” of funds we track, valued at close to $38.6 million in stock. Jeffrey Vinik’s fund, Vinik Asset Management, also said goodbye to its stock, about $15.2 million worth. These moves are interesting, as aggregate hedge fund interest fell by 3 funds at the end of the second quarter.

How have insiders been trading Owens-Illinois Inc (NYSE:OI)?

Bullish insider trading is at its handiest when the company we’re looking at has experienced transactions within the past six months. Over the last 180-day time frame, Owens-Illinois Inc (NYSE:OI) has experienced 3 unique insiders buying, and 5 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 Owens-Illinois Inc (NYSE:OI). These stocks are AptarGroup, Inc. (NYSE:ATR), Sealed Air Corp (NYSE:SEE), Bemis Company, Inc. (NYSE:BMS), Tupperware Brands Corporation (NYSE:TUP), and Packaging Corp Of America (NYSE:PKG). All of these stocks are in the packaging & containers industry and their market caps are closest to OI’s market cap.