Barnes & Noble, Inc. (BKS) Sales Decline But Posts Earnings For FY15: Is It A Good Stock To Buy?

Abrams Capital Management, managed by David Abrams, holds the most valuable position in Barnes & Noble, Inc. (NYSE:BKS). Abrams Capital Management has a $97.7 million position in the stock in 4.11 million shares comprising 7.3% of its 13F portfolio. Second to Abrams Capital Management is Tontine Asset Management, managed by Jeffrey Gendell, which held a $34.1 million position. The fund has 5.3% of its 13F portfolio invested in the stock. Other members of the smart money that hold long positions comprise Joel Greenblatt’s Gotham Asset Management, Curtis Schenker and Craig Effron’s Scoggin and Jim Simons’s Renaissance Technologies.

Judging by the fact that Barnes & Noble, Inc. (NYSE:BKS) has faced declining sentiment from smart money, there were a few money managers that decided to sell off their positions entirely at the end of the first quarter. It’s worth mentioning that Timothy S. Peterson‘s Regiment Capital cut the biggest position of all the hedgies watched by Insider Monkey, valued at an estimated $44.2 million in about 1.9 million calls. Richard Rubin of Hawkeye Capital was right behind this move, as the fund dumped about $13.7 million worth.

With disappointing numbers as well as a decrease in hedge fund interest, we would not recommend a long position in Barnes & Noble, Inc. (NYSE:BKS). We should note that Abrams Capital’s involvement in the stock is a small positive though. Most investors don’t know about this value investor who became a billionaire by identifying undervalued value stocks. We will keep following BKS and Abrams’ moves in this stock.

Disclosure: None