Torchmark Corporation (TMK): Hedge Fund and Insider Sentiment Unchanged, What Should You Do?

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Just as crucial, positive insider trading activity is another way to look at the stock market universe. As the old adage goes: there are a variety of reasons for an insider to drop shares of his or her company, but only one, very clear reason why they would initiate a purchase. Several academic studies have demonstrated the useful potential of this strategy if investors understand where to look (learn more here).

Furthermore, let’s analyze the recent info surrounding Torchmark Corporation (NYSE:TMK).

How have hedgies been trading Torchmark Corporation (NYSE:TMK)?

Heading into Q3, a total of 14 of the hedge funds we track were bullish in this stock, a change of 0% from one quarter earlier. With hedgies’ sentiment swirling, there exists a select group of key hedge fund managers who were boosting their stakes significantly.

According to our 13F database, Warren Buffett’s Berkshire Hathaway had the largest position in Torchmark Corporation (NYSE:TMK), worth close to $275.9 million, comprising 0.3% of its total 13F portfolio. On Berkshire Hathaway’s heels is Winton Capital Management, managed by David Harding, which held a $43.1 million position; 0.5% of its 13F portfolio is allocated to the company. Some other hedge funds with similar optimism include Richard S. Pzena’s Pzena Investment Management, Natixis Global Asset Management’s Harris Associates and Phill Gross and Robert Atchinson’s Adage Capital Management.

Since Torchmark Corporation (NYSE:TMK) has witnessed declining interest from the top-tier hedge fund industry, we can see that there is a sect of money managers that elected to cut their entire stakes last quarter. It’s worth mentioning that Jim Simons’s Renaissance Technologies dumped the biggest investment of the “upper crust” of funds we key on, worth close to $15.4 million in stock, and Matthew Tewksbury of Stevens Capital Management was right behind this move, as the fund cut about $0.8 million worth. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

What do corporate executives and insiders think about Torchmark Corporation (NYSE:TMK)?

Bullish insider trading is best served when the company in focus has experienced transactions within the past half-year. Over the latest half-year time frame, Torchmark Corporation (NYSE:TMK) has experienced zero unique insiders buying, 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 Torchmark Corporation (NYSE:TMK). These stocks are Protective Life Corp. (NYSE:PL), Lincoln National Corporation (NYSE:LNC), Aviva Plc (ADR) (NYSE:AV), Reinsurance Group of America Inc (NYSE:RGA), and Genworth Financial Inc (NYSE:GNW). This group of stocks are in the life insurance industry and their market caps match TMK’s market cap.

Using the returns demonstrated by the previously mentioned analyses, regular investors must always keep one eye on hedge fund and insider trading activity, and Torchmark Corporation (NYSE:TMK) is an important part of this process.

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