Powell Industries, Inc. (NASDAQ:POWL) was in 6 hedge funds’ portfolio at the end of December. POWL shareholders have witnessed an increase in hedge fund interest of late. There were 5 hedge funds in our database with POWL positions at the end of the previous quarter.
At the moment, there are tons of metrics market participants can use to analyze their holdings. Two of the best 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 elite money managers can outclass the broader indices by a very impressive margin (see just how much).
Equally as key, positive insider trading sentiment is a second way to break down the investments you’re interested in. There are plenty of stimuli for an executive to cut shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the valuable potential of this strategy if shareholders know where to look (learn more here).
Keeping this in mind, let’s take a glance at the latest action surrounding Powell Industries, Inc. (NASDAQ:POWL).
How are hedge funds trading Powell Industries, Inc. (NASDAQ:POWL)?
In preparation for this year, a total of 6 of the hedge funds we track were long in this stock, a change of 20% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their holdings substantially.
When looking at the hedgies we track, Royce & Associates, managed by Chuck Royce, holds the biggest position in Powell Industries, Inc. (NASDAQ:POWL). Royce & Associates has a $30.6 million position in the stock, comprising 0.1% of its 13F portfolio. On Royce & Associates’s heels is “Richard S. Meisenberg of ACK Asset Management, with a $8 million position; 3.9% of its 13F portfolio is allocated to the company. Other hedgies that hold long positions include Ken Brodkowitz and Mike Vermut’s Newland Capital, Ken Gray and Steve Walsh’s Bryn Mawr Capital and Jim Simons’s Renaissance Technologies.
As one would reasonably expect, key hedge funds were breaking ground themselves. Newland Capital, managed by Ken Brodkowitz and Mike Vermut, initiated the biggest position in Powell Industries, Inc. (NASDAQ:POWL). Newland Capital had 4.4 million invested in the company at the end of the quarter. Ken Gray and Steve Walsh’s Bryn Mawr Capital also made a $0.5 million investment in the stock during the quarter.
How are insiders trading Powell Industries, Inc. (NASDAQ:POWL)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company we’re looking at has seen transactions within the past half-year. Over the latest 180-day time frame, Powell Industries, Inc. (NASDAQ:POWL) has experienced 1 unique insiders purchasing, 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 Powell Industries, Inc. (NASDAQ:POWL). These stocks are GrafTech International Ltd (NYSE:GTI), Zoltek Companies, Inc. (NASDAQ:ZOLT), Daktronics, Inc. (NASDAQ:DAKT), Altra Holdings, Inc. (NASDAQ:AIMC), and Hollysys Automation Technologies Ltd (NASDAQ:HOLI). This group of stocks belong to the industrial electrical equipment industry and their market caps match POWL’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| GrafTech International Ltd (NYSE:GTI) | 21 | 2 | 2 |
| Zoltek Companies, Inc. (NASDAQ:ZOLT) | 9 | 2 | 0 |
| Daktronics, Inc. (NASDAQ:DAKT) | 10 | 0 | 2 |
| Altra Holdings, Inc. (NASDAQ:AIMC) | 9 | 0 | 3 |
| Hollysys Automation Technologies Ltd (NASDAQ:HOLI) | 5 | 0 | 0 |
With the results demonstrated by Insider Monkey’s research, retail investors should always watch hedge fund and insider trading activity, and Powell Industries, Inc. (NASDAQ:POWL) is no exception.
