Is XPO Logistics Inc (NYSE:XPO) a good investment?
In the financial world, there are many gauges shareholders can use to watch Mr. Market. A duo of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can trounce the S&P 500 by a very impressive amount (see just how much).
Equally as useful, optimistic insider trading activity is a second way to look at the stock market universe. Obviously, there are many incentives for an insider to get rid of shares of his or her company, but only one, very clear reason why they would behave bullishly. Various empirical studies have demonstrated the useful potential of this tactic if “monkeys” understand where to look (learn more here).
Now that that’s out of the way, let’s analyze the newest info about XPO Logistics Inc (NYSE:XPO).
How have hedgies been trading XPO Logistics Inc (NYSE:XPO)?
In preparation for the third quarter, a total of 9 of the hedge funds we track were long in this stock, a change of 13% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their stakes meaningfully.
Out of the hedge funds we follow, Brian Bares’s Bares Capital Management had the most valuable position in XPO Logistics Inc (NYSE:XPO), worth close to $33.5 million, accounting for 3.3% of its total 13F portfolio. Sitting at the No. 2 spot is Tiger Management, managed by Julian Robertson, which held a $15.9 million position; 2% of its 13F portfolio is allocated to the company. Some other hedge funds that are bullish include Scott McLellan’s Marble Arch Investments, Chuck Royce’s Royce & Associates and Manish Chopra’s Tiger Veda.
As industrywide interest increased, particular hedge funds were leading the bulls’ herd. Bares Capital Management, managed by Brian Bares, created the most valuable position in XPO Logistics Inc (NYSE:XPO). Bares Capital Management had 33.5 million invested in the company at the end of the quarter. Howard Marks’s Oaktree Capital Management also made a $29 million investment in the stock during the quarter. The other funds with new positions in the stock are John Osterweis’s Osterweis Capital Management, Julian Robertson’s Tiger Management, and Scott McLellan’s Marble Arch Investments.
What do corporate executives and insiders think about XPO Logistics Inc (NYSE:XPO)?
Insider buying made by high-level executives is particularly usable when the company in question has experienced transactions within the past half-year. Over the last half-year time period, XPO Logistics Inc (NYSE:XPO) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to XPO Logistics Inc (NYSE:XPO). These stocks are Hub Group Inc (NASDAQ:HUBG), Radiant Logistics, Inc. (NYSEAMEX:RLGT), Forward Air Corporation (NASDAQ:FWRD), Roadrunner Transportation Systems Inc (NYSE:RRTS), and Air Transport Services Group Inc. (NASDAQ:ATSG). All of these stocks are in the air delivery & freight services industry and their market caps resemble XPO’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Hub Group Inc (NASDAQ:HUBG) | 10 | 0 | 0 |
| Radiant Logistics, Inc. (NYSEAMEX:RLGT) | 0 | 0 | |
| Forward Air Corporation (NASDAQ:FWRD) | 7 | 0 | 0 |
| Roadrunner Transportation Systems Inc (NYSE:RRTS) | 8 | 0 | 0 |
| Air Transport Services Group Inc. (NASDAQ:ATSG) | 12 | 0 | 0 |
Using the results explained by Insider Monkey’s studies, regular investors should always watch hedge fund and insider trading activity, and XPO Logistics Inc (NYSE:XPO) is no exception.
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