Hedge Funds Are Dumping Home Bancshares Inc (HOMB)

Because Home Bancshares Inc (NASDAQ:HOMB) has encountered falling interest from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of hedge funds who sold off their entire stakes last quarter. It’s worth mentioning that Mark Lee’s Forest Hill Capital sold off the largest stake of the 700 funds followed by Insider Monkey, worth about $22 million in stock, and Anton Schutz’s Mendon Capital Advisors was right behind this move, as the fund dumped about $2 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to Home Bancshares Inc (NASDAQ:HOMB). We will take a look at Convergys Corporation (NYSE:CVG), Horizon Pharma Inc (NASDAQ:HZNP), Papa John’s Int’l, Inc. (NASDAQ:PZZA), and Colony Starwood Homes(NYSE:SFR). This group of stocks’ market caps are closest to HOMB’s market cap.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $299 million. That figure was $32 million in HOMB’s case. Horizon Pharma Inc (NASDAQ:HZNP) is the most popular stock in this table. On the other hand Colony Starwood Homes(NYSE:SFR) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Home Bancshares Inc (NASDAQ:HOMB) is even less popular than SFR. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None