Who’s crazy about Honeywell International Inc. (NYSE:HON)?
To the average investor, there are plenty of gauges shareholders can use to track their holdings. Two of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite fund managers can outclass the S&P 500 by a healthy amount (see just how much).
Just as necessary, positive insider trading sentiment is another way to analyze the world of equities. Just as you’d expect, there are a variety of reasons for a corporate insider to drop shares of his or her company, but just one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the impressive potential of this strategy if “monkeys” know where to look (learn more here).
Keeping this in mind, we’re going to study the recent info surrounding Honeywell International Inc. (NYSE:HON).
What have hedge funds been doing with Honeywell International Inc. (NYSE:HON)?
At Q2’s end, a total of 34 of the hedge funds we track held long positions 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 few notable hedge fund managers who were upping their holdings substantially.
According to our 13F database, Phill Gross and Robert Atchinson’s Adage Capital Management had the most valuable position in Honeywell International Inc. (NYSE:HON), worth close to $326.8 million, accounting for 1% of its total 13F portfolio. The second largest stake is held by GAMCO Investors, managed by Mario Gabelli, which held a $200.6 million position; the fund has 1.3% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Ken Griffin’s Citadel Investment Group, Matt McLennan’s First Eagle Investment Management and Daniel S. Och’s OZ Management.
As aggregate interest spiked, certain money managers were leading the bulls’ herd. Adage Capital Management, managed by Phill Gross and Robert Atchinson, initiated the most outsized position in Honeywell International Inc. (NYSE:HON). Adage Capital Management had 326.8 million invested in the company at the end of the quarter. Mario Gabelli’s GAMCO Investors also made a $200.6 million investment in the stock during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group, Matt McLennan’s First Eagle Investment Management, and Daniel S. Och’s OZ Management.
Insider trading activity in Honeywell International Inc. (NYSE:HON)
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, Honeywell International Inc. (NYSE:HON) has experienced 1 unique insiders buying, and 10 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 Honeywell International Inc. (NYSE:HON). These stocks are Cummins Inc. (NYSE:CMI), Illinois Tool Works Inc. (NYSE:ITW), Koninklijke Philips Electronics NV (ADR) (NYSE:PHG), Siemens AG (ADR) (NYSE:SI), and Danaher Corporation (NYSE:DHR). This group of stocks belong to the diversified machinery industry and their market caps resemble HON’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Cummins Inc. (NYSE:CMI) | 33 | 0 | 5 |
| Illinois Tool Works Inc. (NYSE:ITW) | 24 | 0 | 10 |
| Koninklijke Philips Electronics NV (ADR) (NYSE:PHG) | 8 | 0 | 0 |
| Siemens AG (ADR) (NYSE:SI) | 10 | 0 | 0 |
| Danaher Corporation (NYSE:DHR) | 43 | 0 | 8 |
Using the results demonstrated by our research, average investors should always track hedge fund and insider trading sentiment, and Honeywell International Inc. (NYSE:HON) is no exception.
