In today’s marketplace, there are tons of metrics investors can use to track the equity markets. A couple 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 best hedge fund managers can trounce the S&P 500 by a significant margin (see just how much).
Equally as key, positive insider trading sentiment is another way to look at the stock market universe. As the old adage goes: there are many reasons for an executive to sell shares of his or her company, but just one, very simple reason why they would buy. Various empirical studies have demonstrated the valuable potential of this strategy if piggybackers know what to do (learn more here).
Furthermore, let’s study the recent info for Packaging Corp Of America (NYSE:PKG).
Hedge fund activity in Packaging Corp Of America (NYSE:PKG)
In preparation for the third quarter, a total of 25 of the hedge funds we track held long positions in this stock, a change of 14% from one quarter earlier. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were increasing their stakes significantly.
Out of the hedge funds we follow, Matt McLennan’s First Eagle Investment Management had the biggest position in Packaging Corp Of America (NYSE:PKG), worth close to $67.9 million, accounting for 0.2% of its total 13F portfolio. Sitting at the No. 2 spot is Robert B. Gillam of McKinley Capital Management, with a $31.3 million position; the fund has 1.6% of its 13F portfolio invested in the stock. Other peers with similar optimism include D. E. Shaw’s D E Shaw, SAC Subsidiary’s CR Intrinsic Investors and Andrew Sandler’s Sandler Capital Management.
As one would understandably expect, specific money managers have jumped into Packaging Corp Of America (NYSE:PKG) headfirst. First Eagle Investment Management, managed by Matt McLennan, initiated the biggest position in Packaging Corp Of America (NYSE:PKG). First Eagle Investment Management had 67.9 million invested in the company at the end of the quarter. Robert B. Gillam’s McKinley Capital Management also made a $31.3 million investment in the stock during the quarter. The other funds with brand new PKG positions are D. E. Shaw’s D E Shaw, SAC Subsidiary’s CR Intrinsic Investors, and Andrew Sandler’s Sandler Capital Management.
What have insiders been doing with Packaging Corp Of America (NYSE:PKG)?
Insider buying made by high-level executives is most useful when the company in question has seen transactions within the past 180 days. Over the latest six-month time period, Packaging Corp Of America (NYSE:PKG) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Packaging Corp Of America (NYSE:PKG). These stocks are AptarGroup, Inc. (NYSE:ATR), Sealed Air Corp (NYSE:SEE), Bemis Company, Inc. (NYSE:BMS), Owens-Illinois Inc (NYSE:OI), and Tupperware Brands Corporation (NYSE:TUP). This group of stocks are the members of the packaging & containers industry and their market caps are similar to PKG’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| AptarGroup, Inc. (NYSE:ATR) | 8 | 0 | 0 |
| Sealed Air Corp (NYSE:SEE) | 37 | 0 | 0 |
| Bemis Company, Inc. (NYSE:BMS) | 14 | 0 | 0 |
| Owens-Illinois Inc (NYSE:OI) | 27 | 0 | 0 |
| Tupperware Brands Corporation (NYSE:TUP) | 16 | 0 | 0 |
Using the results shown by Insider Monkey’s strategies, average investors should always pay attention to hedge fund and insider trading sentiment, and Packaging Corp Of America (NYSE:PKG) applies perfectly to this mantra.
