Pinnacle Entertainment, Inc (PNK): Small Sell-off Witnessed, But Smart Money Still Bullish

Because Pinnacle Entertainment, Inc (NYSE:PNK) has experienced falling interest from the smart money, it’s easy to see that there lies a certain “tier” of hedge funds that decided to sell off their entire stakes last quarter. It’s worth mentioning that Daniel Lewis’ Orange Capital dumped the biggest stake of all the hedgies tracked by Insider Monkey, totaling an estimated $65.8 million in stock, and Josh Resnick’s Jericho Capital Asset Management was right behind this move, as the fund cut about $36.8 million worth of shares. These bearish behaviors are interesting, as total hedge fund interest was cut by 4 funds last quarter.

Let’s also examine hedge fund activity in other stocks similar to Pinnacle Entertainment, Inc (NYSE:PNK). These stocks are Group 1 Automotive, Inc. (NYSE:GPI), Imperva Inc (NYSE:IMPV), Manitowoc Company, Inc. (NYSE:MTW), and Paycom Software Inc (NYSE:PAYC). This group of stocks’ market values are similar to Pinnacle Entertainment, Inc’s market value.

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $394 million. That figure was $584 million in Pinnacle Entertainment, Inc’s case. Group 1 Automotive, Inc. (NYSE:GPI) is the most popular stock in this table. On the other hand Paycom Software Inc (NYSE:PAYC) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks Pinnacle Entertainment, Inc (NYSE:PNK) is more popular among hedge funds. Considering that hedge funds are still fond of this stock in relation to its market cap peers despite the small dip in ownership, it may be a good idea to analyze it in detail and potentially include it in your portfolio.