What Smart Money Thinks about Denbury Resources Inc. (DNR)?

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We already know that not all hedge funds are bullish on the stock and some hedge funds actually sold off their positions entirely. Intriguingly, Andy Redleaf’s Whitebox Advisors sold off the largest stake of the “upper crust” of funds tracked by Insider Monkey, comprising about $4.2 million in stock. Jacob Gottlieb’s fund, Visium Asset Management, also sold off its stock, valued at about $2.7 million.

Let’s go over hedge fund activity in other stocks similar to Denbury Resources Inc. (NYSE:DNR). These stocks are Apogee Enterprises, Inc. (NASDAQ:APOG), Portola Pharmaceuticals Inc (NASDAQ:PTLA), TransAlta Corporation (USA) (NYSE:TAC), and Spartan Stores, Inc. (NASDAQ:SPTN). This group of stocks’ market caps are similar to DNR’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
APOG 14 71670 1
PTLA 15 236123 -2
TAC 7 32380 -1
SPTN 18 55934 2

As you can see these stocks had an average of 14 funds with bullish positions and the average amount invested in these stocks was $99 million, compared to $66 million in DNR’s case. Spartan Stores, Inc. (NASDAQ:SPTN) is the most popular stock in this table. On the other hand TransAlta Corporation (USA) (NYSE:TAC) is the least popular one with only seven funds holding long positions. Denbury Resources Inc. (NYSE:DNR) 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 Spartan Stores, Inc. (NASDAQ:SPTN) might be a better candidate to consider taking a long position in.

Disclosure: none

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