Stanley Black & Decker, Inc. (SWK): Hedge Funds Aren’t Crazy About It, Insider Sentiment Unchanged

Is Stanley Black & Decker, Inc. (NYSE:SWK) a buy or a sell?

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What’s more, it’s important to study the recent info about Stanley Black & Decker, Inc. (NYSE:SWK).

What does the smart money think about Stanley Black & Decker, Inc. (NYSE:SWK)?

At the end of the second quarter, a total of 21 of the hedge funds we track held long positions in this stock, a change of -19% from the previous quarter. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes substantially.

Out of the hedge funds we follow, Ariel Investments, managed by John W. Rogers, holds the largest position in Stanley Black & Decker, Inc. (NYSE:SWK). Ariel Investments has a $68.4 million position in the stock, comprising 1.1% of its 13F portfolio. On Ariel Investments’s heels is Martin D. Sass of MD Sass, with a $34.2 million position; the fund has 2.8% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions include Ken Griffin’s Citadel Investment Group, Phill Gross and Robert Atchinson’s Adage Capital Management and Israel Englander’s Millennium Management.

Judging by the fact that Stanley Black & Decker, Inc. (NYSE:SWK) has experienced declining interest from the smart money’s best and brightest, it’s easy to see that there is a sect of hedge funds that slashed their entire stakes last quarter. It’s worth mentioning that Daniel S. Och’s OZ Management said goodbye to the biggest position of the 450+ funds we monitor, valued at about $27.7 million in stock, and Frank Brosens of Taconic Capital was right behind this move, as the fund sold off about $14.2 million worth. These moves are interesting, as total hedge fund interest was cut by 5 funds last quarter.

What do corporate executives and insiders think about Stanley Black & Decker, Inc. (NYSE:SWK)?

Insider buying made by high-level executives is most useful when the primary stock in question has experienced transactions within the past 180 days. Over the last half-year time period, Stanley Black & Decker, Inc. (NYSE:SWK) has seen zero unique insiders purchasing, and 17 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 Stanley Black & Decker, Inc. (NYSE:SWK). These stocks are RBC Bearings Incorporated (NASDAQ:ROLL), Proto Labs Inc (NYSE:PRLB), Kennametal Inc. (NYSE:KMT), MRC Global Inc (NYSE:MRC), and The Timken Company (NYSE:TKR). This group of stocks belong to the machine tools & accessories industry and their market caps resemble SWK’s market cap.

Using the results demonstrated by our tactics, regular investors must always track hedge fund and insider trading sentiment, and Stanley Black & Decker, Inc. (NYSE:SWK) is no exception.

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