In today’s marketplace, there are dozens of gauges investors can use to analyze Mr. Market. A couple of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite fund managers can outpace the market by a very impressive amount (see just how much).
Just as necessary, bullish insider trading sentiment is a second way to look at the stock market universe. Obviously, there are plenty of incentives for an insider to drop shares of his or her company, but only one, very clear reason why they would buy. Several academic studies have demonstrated the valuable potential of this strategy if piggybackers know where to look (learn more here).
What’s more, let’s study the newest info surrounding PACCAR Inc (NASDAQ:PCAR).
What does the smart money think about PACCAR Inc (NASDAQ:PCAR)?
At the end of the second quarter, a total of 15 of the hedge funds we track were long in this stock, a change of -6% from one quarter earlier. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were increasing their stakes meaningfully.
According to our 13F database, Legg Mason Capital Management, managed by Bill Miller, holds the biggest position in PACCAR Inc (NASDAQ:PCAR). Legg Mason Capital Management has a $73.4 million position in the stock, comprising 1.3% of its 13F portfolio. Coming in second is Crispin Odey of Odey Asset Management Group, with a $27.7 million position; the fund has 1.1% of its 13F portfolio invested in the stock. Other peers with similar optimism include Daniel Lascano’s Lomas Capital Management, and Thomas A. Giovine’s Giovine Capital.
Judging by the fact that PACCAR Inc (NASDAQ:PCAR) has faced bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there is a sect of hedge funds who sold off their entire stakes heading into Q2. Interestingly, Steven Cohen’s SAC Capital Advisors dropped the biggest investment of all the hedgies we monitor, worth close to $15.2 million in stock, and Ken Griffin of Citadel Investment Group was right behind this move, as the fund dumped about $2.2 million worth. These moves are intriguing to say the least, as total hedge fund interest fell by 1 funds heading into Q2.
How have insiders been trading PACCAR Inc (NASDAQ:PCAR)?
Insider buying made by high-level executives is particularly usable when the company in focus has experienced transactions within the past 180 days. Over the latest half-year time period, PACCAR Inc (NASDAQ:PCAR) has experienced zero unique insiders buying, and zero 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 PACCAR Inc (NASDAQ:PCAR). These stocks are Accuride Corporation (NYSE:ACW), Wabash National Corporation (NYSE:WNC), Hyster-Yale Materials Handling Inc (NYSE:HY), Navistar International Corp (NYSE:NAV), and Oshkosh Corporation (NYSE:OSK). This group of stocks are the members of the trucks & other vehicles industry and their market caps resemble PCAR’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Accuride Corporation (NYSE:ACW) | 9 | 0 | 0 |
| Wabash National Corporation (NYSE:WNC) | 14 | 0 | 0 |
| Hyster-Yale Materials Handling Inc (NYSE:HY) | 12 | 0 | 0 |
| Navistar International Corp (NYSE:NAV) | 24 | 0 | 0 |
| Oshkosh Corporation (NYSE:OSK) | 18 | 0 | 0 |
Using the returns shown by Insider Monkey’s research, average investors must always keep one eye on hedge fund and insider trading sentiment, and PACCAR Inc (NASDAQ:PCAR) is an important part of this process.
