Daktronics, Inc. (DAKT): Are Hedge Funds Right About This Stock?

Due to the fact that Daktronics, Inc. (NASDAQ:DAKT) has faced declining sentiment from the entirety of the hedge funds we track, logic holds that there was a specific group of fund managers who sold off their positions entirely by the end of the third quarter. It’s worth mentioning that Israel Englander’s Millennium Management cut the biggest position of the 700 funds monitored by Insider Monkey, valued at an estimated $0.6 million in stock, and Neil Chriss’s Hutchin Hill Capital was right behind this move, as the fund dropped about $0.4 million worth of DAKT shares. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 3 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Daktronics, Inc. (NASDAQ:DAKT) but similarly valued. We will take a look at CU Bancorp (NASDAQ:CUNB), The First of Long Island Corporation (NASDAQ:FLIC), Mechel OAO (ADR) (NYSE:MTL), and Primero Mining Corp (NYSE:PPP). All of these stocks’ market caps are closest to DAKT’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CUNB 7 36379 2
FLIC 6 50033 0
MTL 6 430 1
PPP 9 12316 -2

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $25 million. That figure was $13 million in DAKT’s case. Primero Mining Corp (NYSE:PPP) is the most popular stock in this table. On the other hand The First of Long Island Corporation (NASDAQ:FLIC) and Mechel OAO (ADR) (NYSE:MTL) are the least popular ones with only 6 bullish hedge fund positions. Compared to these stocks Daktronics, Inc. (NASDAQ:DAKT) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.