Is Big 5 Sporting Goods Corporation (NASDAQ:BGFV) the right investment to pursue these days? Money managers are getting more bullish. The number of long hedge fund positions moved up by 6 lately.
In the financial world, there are a multitude of metrics shareholders can use to monitor Mr. Market. Some of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best fund managers can outpace the broader indices by a healthy margin (see just how much).
Just as important, bullish insider trading sentiment is a second way to break down the stock market universe. As the old adage goes: there are plenty of incentives for a corporate insider to sell shares of his or her company, but only one, very simple reason why they would buy. Various academic studies have demonstrated the market-beating potential of this tactic if “monkeys” know where to look (learn more here).
Keeping this in mind, we’re going to take a gander at the recent action regarding Big 5 Sporting Goods Corporation (NASDAQ:BGFV).
How are hedge funds trading Big 5 Sporting Goods Corporation (NASDAQ:BGFV)?
At the end of the first quarter, a total of 17 of the hedge funds we track were bullish in this stock, a change of 55% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their holdings substantially.
According to our comprehensive database, Alexander Medina Seaver’s Stadium Capital Management had the biggest position in Big 5 Sporting Goods Corporation (NASDAQ:BGFV), worth close to $50.3 million, comprising 11.3% of its total 13F portfolio. Coming in second is MFP Investors, managed by Michael Price, which held a $5.5 million position; 0.7% of its 13F portfolio is allocated to the company. Remaining peers that hold long positions include Mario Gabelli’s GAMCO Investors, Israel Englander’s Millennium Management and Joel Greenblatt’s Gotham Asset Management.
Consequently, specific money managers were leading the bulls’ herd. Highbridge Capital Management, managed by Glenn Russell Dubin, initiated the biggest position in Big 5 Sporting Goods Corporation (NASDAQ:BGFV). Highbridge Capital Management had 1.5 million invested in the company at the end of the quarter. Mike Vranos’s Ellington also initiated a $0.4 million position during the quarter. The following funds were also among the new BGFV investors: Andy Redleaf’s Whitebox Advisors, Cliff Asness’s AQR Capital Management, and Matthew Tewksbury’s Stevens Capital Management.
What do corporate executives and insiders think about Big 5 Sporting Goods Corporation (NASDAQ:BGFV)?
Bullish insider trading is at its handiest when the company in question has experienced transactions within the past half-year. Over the latest six-month time frame, Big 5 Sporting Goods Corporation (NASDAQ:BGFV) has seen zero unique insiders buying, and 11 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Big 5 Sporting Goods Corporation (NASDAQ:BGFV). These stocks are Sport Chalet, Inc. (NASDAQ:SPCHB), Dover Saddlery, Inc. (NASDAQ:DOVR), Dicks Sporting Goods Inc (NYSE:DKS), Cabelas Inc (NYSE:CAB), and Hibbett Sports, Inc. (NASDAQ:HIBB). This group of stocks belong to the sporting goods stores industry and their market caps resemble BGFV’s market cap.