In the 21st century investor’s toolkit, there are plenty of gauges shareholders can use to watch the equity markets. Some of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite fund managers can outpace the broader indices by a healthy amount (see just how much).
Just as useful, optimistic insider trading sentiment is another way to analyze the world of equities. There are lots of incentives for an insider to cut shares of his or her company, but just one, very obvious reason why they would buy. Various empirical studies have demonstrated the market-beating potential of this tactic if investors understand where to look (learn more here).
What’s more, we’re going to analyze the newest info surrounding Pentair, Ltd. Registered Share (NYSE:PNR).
Hedge fund activity in Pentair, Ltd. Registered Share (NYSE:PNR)
In preparation for the third quarter, a total of 28 of the hedge funds we track held long positions in this stock, a change of -15% from one quarter earlier. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were upping their holdings considerably.
According to our 13F database, Larry Robbins’s Glenview Capital had the largest position in Pentair, Ltd. Registered Share (NYSE:PNR), worth close to $244.2 million, comprising 2.2% of its total 13F portfolio. On Glenview Capital’s heels is David Gallo of Valinor Management LLC, with a $73.1 million position; 3% of its 13F portfolio is allocated to the stock. Remaining hedgies that are bullish include Ken Griffin’s Citadel Investment Group, Ian Simm’s Impax Asset Management and D. E. Shaw’s D E Shaw.
Since Pentair, Ltd. Registered Share (NYSE:PNR) has witnessed dropping sentiment from upper-tier hedge fund managers, we can see that there exists a select few hedgies that decided to sell off their positions entirely heading into Q2. It’s worth mentioning that Michael R. Weisberg’s Crestwood Capital Management said goodbye to the largest position of all the hedgies we watch, comprising close to $23.3 million in stock, and Phill Gross and Robert Atchinson of Adage Capital Management was right behind this move, as the fund said goodbye to about $16.2 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest fell by 5 funds heading into Q2.
Insider trading activity in Pentair, Ltd. Registered Share (NYSE:PNR)
Insider buying made by high-level executives is most useful when the company in focus has experienced transactions within the past 180 days. Over the last six-month time frame, Pentair, Ltd. Registered Share (NYSE:PNR) has seen zero unique insiders buying, and 9 insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Pentair, Ltd. Registered Share (NYSE:PNR). These stocks are Ingersoll-Rand PLC (NYSE:IR), Pall Corporation (NYSE:PLL), Flowserve Corporation (NYSE:FLS), Roper Industries, Inc. (NYSE:ROP), and Dover Corp (NYSE:DOV). All of these stocks are in the diversified machinery industry and their market caps are similar to PNR’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Ingersoll-Rand PLC (NYSE:IR) | 43 | 3 | 14 |
| Pall Corporation (NYSE:PLL) | 23 | 2 | 7 |
| Flowserve Corporation (NYSE:FLS) | 28 | 0 | 4 |
| Roper Industries, Inc. (NYSE:ROP) | 24 | 0 | 3 |
| Dover Corp (NYSE:DOV) | 20 | 0 | 7 |
Using the results demonstrated by the previously mentioned analyses, regular investors should always keep one eye on hedge fund and insider trading sentiment, and Pentair, Ltd. Registered Share (NYSE:PNR) is an important part of this process.
