How Dime Community Bancshares, Inc. (DCOM) Stacks Up Against Its Peers

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: McKinley Capital Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Highbridge Capital Management).

Let’s go over hedge fund activity in other stocks similar to Dime Community Bancshares, Inc. (NASDAQ:DCOM). We will take a look at Richmont Mines Inc. (USA) (NYSEAMEX:RIC), Cass Information Systems (NASDAQ:CASS), Diamond Hill Investment Group, Inc. (NASDAQ:DHIL), and EPIQ Systems, Inc. (NASDAQ:EPIQ). This group of stocks’ market valuations resemble DCOM’s market valuation.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $66 million. That figure was $33 million in DCOM’s case. Richmont Mines Inc. (USA) (NYSEAMEX:RIC) is the most popular stock in this table. On the other hand Cass Information Systems (NASDAQ:CASS) is the least popular one with only 5 bullish hedge fund positions. Dime Community Bancshares, Inc. (NASDAQ:DCOM) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard RIC might be a better candidate to consider taking a long position in.

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