Do Hedge Funds and Insiders Love Siemens AG (ADR) (SI)?
Is Siemens AG (ADR) (NYSE:SI) a good investment?
In the 21st century investor’s toolkit, there are dozens of gauges investors can use to analyze Mr. Market. Two of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best investment managers can beat the market by a healthy margin (see just how much).
Equally as useful, positive insider trading activity is a second way to look at the world of equities. Obviously, there are lots of stimuli for an executive to cut shares of his or her company, but only one, very simple reason why they would behave bullishly. Various empirical studies have demonstrated the market-beating potential of this tactic if shareholders know what to do (learn more here).
What's more, it's important to discuss the latest info surrounding Siemens AG (ADR) (NYSE:SI).
How have hedgies been trading Siemens AG (ADR) (NYSE:SI)?
In preparation for the third quarter, a total of 10 of the hedge funds we track were long in this stock, a change of -17% from the previous quarter. With hedge funds' sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their stakes significantly.
According to our 13F database, John Overdeck and David Siegel's Two Sigma Advisors had the largest position in Siemens AG (ADR) (NYSE:SI), worth close to $13.3 million, comprising 0.2% of its total 13F portfolio. Coming in second is Jim Simons of Renaissance Technologies, with a $8.1 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other hedgies that hold long positions include Ken Fisher's Fisher Asset Management, David Dreman's Dreman Value Management and Matthew Tewksbury's Stevens Capital Management.
As Siemens AG (ADR) (NYSE:SI) has faced declining interest from the smart money's best and brightest, logic holds that there was a specific group of fund managers who sold off their positions entirely heading into Q2. Intriguingly, Matthew Hulsizer's PEAK6 Capital Management dumped the biggest stake of the "upper crust" of funds we track, valued at an estimated $1.3 million in stock. Israel Englander's fund, Millennium Management, also cut its stock, about $0.6 million worth. These transactions are important to note, as total hedge fund interest fell by 2 funds heading into Q2.
What have insiders been doing with Siemens AG (ADR) (NYSE:SI)?
Bullish insider trading is most useful when the company in question has experienced transactions within the past six months. Over the last half-year time frame, Siemens AG (ADR) (NYSE:SI) has seen 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 Siemens AG (ADR) (NYSE:SI). These stocks are Illinois Tool Works Inc. (NYSE:ITW), Koninklijke Philips Electronics NV (ADR) (NYSE:PHG), General Electric Company (NYSE:GE), Danaher Corporation (NYSE:DHR), and Honeywell International Inc. (NYSE:HON). All of these stocks are in the diversified machinery industry and their market caps are similar to SI's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
Illinois Tool Works Inc. (NYSE:ITW)
Koninklijke Philips Electronics NV (ADR) (NYSE:PHG)
General Electric Company (NYSE:GE)
Danaher Corporation (NYSE:DHR)
Honeywell International Inc. (NYSE:HON)
Using the results explained by the previously mentioned analyses, average investors must always keep one eye on hedge fund and insider trading sentiment, and Siemens AG (ADR) (NYSE:SI) is an important part of this process.