Francesca’s Holdings Corp (NASDAQ:FRAN), EZCORP Inc (NASDAQ:EZPW): This Metric Says You Are Smart to Sell Finish Line Inc (NASDAQ:FINL)

Finish Line Inc (NASDAQ:FINL) has experienced a decrease in hedge fund sentiment in recent months.

Finish Line Inc (NASDAQ:FINL)To the average investor, there are many metrics shareholders can use to track publicly traded companies. Some of the best are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top investment managers can trounce the broader indices by a solid margin (see just how much).

Equally as key, optimistic insider trading activity is a second way to parse down the investments you’re interested in. There are a number of incentives for a bullish insider to get rid of shares of his or her company, but only one, very clear reason why they would initiate a purchase. Several academic studies have demonstrated the useful potential of this strategy if you understand what to do (learn more here).

Consequently, let’s take a look at the recent action encompassing Finish Line Inc (NASDAQ:FINL).

How have hedgies been trading Finish Line Inc (NASDAQ:FINL)?

At the end of the fourth quarter, a total of 15 of the hedge funds we track were bullish in this stock, a change of -6% from the previous quarter. With the smart money’s capital changing hands, there exists an “upper tier” of notable hedge fund managers who were upping their stakes meaningfully.

When looking at the hedgies we track, Royce & Associates, managed by Chuck Royce, holds the most valuable position in Finish Line Inc (NASDAQ:FINL). Royce & Associates has a $97 million position in the stock, comprising 0.3% of its 13F portfolio. The second largest stake is held by Hawkeye Capital, managed by Richard Rubin, which held a $33 million position; the fund has 16.1% of its 13F portfolio invested in the stock. Some other peers that hold long positions include Ken Griffin’s Citadel Investment Group, David Keidan’s Buckingham Capital Management and D. E. Shaw’s D E Shaw.

Due to the fact that Finish Line Inc (NASDAQ:FINL) has witnessed bearish sentiment from the smart money, logic holds that there lies a certain “tier” of hedge funds that slashed their full holdings in Q4. Interestingly, Steven Cohen’s SAC Capital Advisors dumped the biggest stake of the 450+ funds we key on, valued at close to $39 million in stock., and Eric Sprott of Sprott Asset Management was right behind this move, as the fund dumped about $4 million worth. These transactions are interesting, as total hedge fund interest dropped by 1 funds in Q4.

How are insiders trading Finish Line Inc (NASDAQ:FINL)?

Insider buying is at its handiest when the company in question has seen transactions within the past six months. Over the last half-year time period, Finish Line Inc (NASDAQ:FINL) has seen zero unique insiders purchasing, and 5 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 Finish Line Inc (NASDAQ:FINL). These stocks are Francesca’s Holdings Corp (NASDAQ:FRAN), EZCORP Inc (NASDAQ:EZPW), Office Depot Inc (NYSE:ODP), OfficeMax Inc (NYSE:OMX), and Barnes & Noble, Inc. (NYSE:BKS). This group of stocks belong to the specialty retail, other industry and their market caps are similar to FINL’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Francesca’s Holdings Corp (NASDAQ:FRAN) 21 4 1
EZCORP Inc (NASDAQ:EZPW) 15 0 2
Office Depot Inc (NYSE:ODP) 15 5 0
OfficeMax Inc (NYSE:OMX) 18 0 1
Barnes & Noble, Inc. (NYSE:BKS) 18 0 3

With the results shown by the aforementioned strategies, retail investors should always keep an eye on hedge fund and insider trading sentiment, and Finish Line Inc (NASDAQ:FINL) is an important part of this process.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 9 Most Dangerous Countries for Tourists to Visit

Reign of Terror: The 10 Most Ruthless Politicians in History

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!