Knight Transportation (KNX): Are Hedge Funds Right About This Stock?

Judging by the fact that Knight Transportation (NYSE:KNX) has faced declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of hedgies that decided to sell off their full holdings last quarter. Intriguingly, Greg Poole’s Echo Street Capital Management dumped the largest stake of the “upper crust” of funds tracked by Insider Monkey, comprising an estimated $17.7 million in stock, and Robert Bishop’s Impala Asset Management was right behind this move, as the fund dropped about $8.6 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 3 funds last quarter.

Let’s check out hedge fund activity in other stocks similar to Knight Transportation (NYSE:KNX). These stocks are The New York Times Company (NYSE:NYT), Xenia Hotels & Resorts Inc (NYSE:XHR), Grupo Aeroportuario del Centro Nort(ADR) (NASDAQ:OMAB), and Summit Materials Inc (NYSE:SUM). This group of stocks’ market values resemble KNX’s market value.

As you can see these stocks had an average of 16.5 hedge funds with bullish positions and the average amount invested in these stocks was $166 million. That figure was $81 million in KNX’s case. Summit Materials Inc (NYSE:SUM) is the most popular stock in this table. On the other hand Grupo Aeroportuario del Centro Nort(ADR) (NASDAQ:OMAB) is the least popular one with only 5 bullish hedge fund positions. Knight Transportation (NYSE:KNX) 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 SUM might be a better candidate to consider a long position.