Is Tuesday Morning Corporation (NASDAQ:TUES) a buy right now? The smart money is taking an optimistic view. The number of bullish hedge fund bets advanced by 7 recently.
At the moment, there are dozens of indicators market participants can use to watch Mr. Market. A couple of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top investment managers can trounce the S&P 500 by a superb margin (see just how much).
Equally as important, optimistic insider trading sentiment is a second way to parse down the investments you’re interested in. There are a number of stimuli for a bullish insider to drop shares of his or her company, but only one, very obvious reason why they would behave bullishly. Several academic studies have demonstrated the impressive potential of this method if piggybackers understand what to do (learn more here).
Keeping this in mind, let’s take a look at the latest action encompassing Tuesday Morning Corporation (NASDAQ:TUES).
What have hedge funds been doing with Tuesday Morning Corporation (NASDAQ:TUES)?
At Q1′s end, a total of 13 of the hedge funds we track were long in this stock, a change of 117% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their stakes meaningfully.
According to our comprehensive database, Matthew Drapkin and Steven R. Becker’s Becker Drapkin Management had the largest position in Tuesday Morning Corporation (NASDAQ:TUES), worth close to $29.7 million, accounting for 19% of its total 13F portfolio. Coming in second is Chuck Royce of Royce & Associates, with a $2.9 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include Israel Englander’s Millennium Management, Richard Driehaus’s Driehaus Capital and Glenn Russell Dubin’s Highbridge Capital Management.
As one would reasonably expect, specific money managers have jumped into Tuesday Morning Corporation (NASDAQ:TUES) headfirst. Driehaus Capital, managed by Richard Driehaus, established the most valuable position in Tuesday Morning Corporation (NASDAQ:TUES). Driehaus Capital had 1.8 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated a $0.7 million position during the quarter. The other funds with brand new TUES positions are Ken Griffin’s Citadel Investment Group, Ken Gray and Steve Walsh’s Bryn Mawr Capital, and Steven Cohen’s SAC Capital Advisors.
How have insiders been trading Tuesday Morning Corporation (NASDAQ:TUES)?
Insider purchases made by high-level executives is best served when the company in focus has seen transactions within the past 180 days. Over the last half-year time period, Tuesday Morning Corporation (NASDAQ:TUES) has experienced 4 unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Tuesday Morning Corporation (NASDAQ:TUES). These stocks are Family Dollar Stores, Inc. (NYSE:FDO), Alco Stores Inc (NASDAQ:ALCS), PriceSmart, Inc. (NASDAQ:PSMT), Big Lots, Inc. (NYSE:BIG), and Fred’s, Inc. (NASDAQ:FRED). All of these stocks are in the discount, variety stores industry and their market caps match TUES’s market cap.