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.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure 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!