At the moment, there are plenty of methods investors can use to track the equity markets. A pair of the best are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top fund managers can trounce the broader indices by a superb margin (see just how much).
Just as necessary, positive insider trading activity is another way to look at the world of equities. Just as you’d expect, there are a number of stimuli for a bullish insider to cut shares of his or her company, but just one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the valuable potential of this strategy if you know where to look (learn more here).
Thus, it’s important to study the newest info about Fortune Brands Home & Security Inc (NYSE:FBHS).
What does the smart money think about Fortune Brands Home & Security Inc (NYSE:FBHS)?
Heading into Q3, a total of 27 of the hedge funds we track held long positions in this stock, a change of 17% from the first quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings considerably.
As aggregate interest spiked, specific money managers were leading the bulls’ herd. GAMCO Investors, managed by Mario Gabelli, assembled the biggest position in Fortune Brands Home & Security Inc (NYSE:FBHS). GAMCO Investors had 90.8 million invested in the company at the end of the quarter. Patrick McCormack’s Tiger Consumer Management also made a $84.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Alexander Mitchell’s Scopus Asset Management, D. E. Shaw’s D E Shaw, and Andrew Sandler’s Sandler Capital Management.
How have insiders been trading Fortune Brands Home & Security Inc (NYSE:FBHS)?
Bullish insider trading is most useful when the company we’re looking at has experienced transactions within the past six months. Over the last six-month time period, Fortune Brands Home & Security Inc (NYSE:FBHS) has experienced 1 unique insiders purchasing, and 7 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 Fortune Brands Home & Security Inc (NYSE:FBHS). These stocks are La-Z-Boy Incorporated (NYSE:LZB), Select Comfort Corp. (NASDAQ:SCSS), Mattress Firm Holding Corp (NASDAQ:MFRM), Tempur-Pedic International Inc. (NYSE:TPX), and Leggett & Platt, Inc. (NYSE:LEG). This group of stocks belong to the home furnishings & fixtures industry and their market caps are similar to FBHS’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| La-Z-Boy Incorporated (NYSE:LZB) | 14 | 0 | 4 |
| Select Comfort Corp. (NASDAQ:SCSS) | 14 | 1 | 3 |
| Mattress Firm Holding Corp (NASDAQ:MFRM) | 8 | 0 | 8 |
| Tempur-Pedic International Inc. (NYSE:TPX) | 23 | 0 | 3 |
| Leggett & Platt, Inc. (NYSE:LEG) | 15 | 0 | 9 |
Using the results demonstrated by Insider Monkey’s studies, regular investors must always keep one eye on hedge fund and insider trading activity, and Fortune Brands Home & Security Inc (NYSE:FBHS) is no exception.
