Is Denny’s Corporation (DENN) Going to Burn These Hedge Funds?

Page 1 of 2

Is Denny’s Corporation (NASDAQ:DENN) going to take off soon? The best stock pickers are becoming hopeful. The number of long hedge fund positions inched up by 3 lately.

In today’s marketplace, there are a multitude of gauges investors can use to analyze Mr. Market. A couple of the most useful are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top money managers can outpace the market by a superb margin (see just how much).

Just as integral, positive insider trading activity is another way to parse down the investments you’re interested in. As the old adage goes: there are plenty of incentives for an upper level exec to downsize shares of his or her company, but just one, very simple reason why they would behave bullishly. Several empirical studies have demonstrated the valuable potential of this tactic if “monkeys” understand where to look (learn more here).

With all of this in mind, we’re going to take a peek at the key action encompassing Denny’s Corporation (NASDAQ:DENN).

What have hedge funds been doing with Denny’s Corporation (NASDAQ:DENN)?

At the end of the first quarter, a total of 13 of the hedge funds we track were bullish in this stock, a change of 30% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their stakes considerably.

When looking at the hedgies we track, Peter S. Park’s Park West Asset Management had the biggest position in Denny’s Corporation (NASDAQ:DENN), worth close to $14.2 million, comprising 1.6% of its total 13F portfolio. Coming in second is Daniel Lewis of Orange Capital, with a $10.8 million position; 1.5% of its 13F portfolio is allocated to the company. Remaining peers that are bullish include Robert B. Gillam’s McKinley Capital Management, Mario Gabelli’s GAMCO Investors and Louis Bacon’s Moore Global Investments.

Now, specific money managers were leading the bulls’ herd. Orange Capital, managed by Daniel Lewis, established the largest position in Denny’s Corporation (NASDAQ:DENN). Orange Capital had 10.8 million invested in the company at the end of the quarter. Louis Bacon’s Moore Global Investments also initiated a $2.9 million position during the quarter. The other funds with brand new DENN positions are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Jim Simons’s Renaissance Technologies, and Mike Vranos’s Ellington.

How are insiders trading Denny’s Corporation (NASDAQ:DENN)?

Insider trading activity, especially when it’s bullish, is at its handiest when the primary stock in question has experienced transactions within the past half-year. Over the latest half-year time period, Denny’s Corporation (NASDAQ:DENN) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Denny’s Corporation (NASDAQ:DENN). These stocks are Fiesta Restaurant Group Inc (NASDAQ:FRGI), Ruby Tuesday, Inc. (NYSE:RT), CEC Entertainment, Inc. (NYSE:CEC), Chuy’s Holdings Inc (NASDAQ:CHUY), and Biglari Holdings Inc (NYSE:BH). All of these stocks are in the restaurants industry and their market caps resemble DENN’s market cap.

Page 1 of 2
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 Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations 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!