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Diebold Inc (DBD): Hedge Fund Ownership Surges 90% in 1 Year

The 700+ hedge funds and money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund positions. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Diebold Inc (NYSE:DBD).

Diebold Inc (NYSE:DBD) has seen an increase in hedge fund sentiment in recent months. DBD was in 19 hedge funds’ portfolios at the end of the third quarter of 2016. There were 15 hedge funds in our database with DBD positions at the end of the previous quarter. At the end of this article we will also compare DBD to other stocks including Eagle Bancorp, Inc. (NASDAQ:EGBN), Steelcase Inc. (NYSE:SCS), and Gannett Co., Inc. (NYSE:GCI) to get a better sense of its popularity.

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doctor_bass/Shutterstock.com

doctor_bass/Shutterstock.com

How are hedge funds trading Diebold Inc (NYSE:DBD)?

At the end of the third quarter, a total of 19 of the hedge funds tracked by Insider Monkey were long this stock, a 27% jump from one quarter earlier. Hedge fund ownership of the stock has nearly doubled over the past year, surging by 90%. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).

HedgeFundSentimentChart

According to Insider Monkey’s hedge fund database, Mario Gabelli’s GAMCO Investors has the biggest position in Diebold Inc (NYSE:DBD), worth close to $92.5 million. The second largest stake is held by Chuck Royce of Royce & Associates, with a $48.9 million position. Remaining hedge funds and institutional investors that hold long positions include Mariko Gordon’s Daruma Asset Management, Dmitry Balyasny’s Balyasny Asset Management and Steve Cohen’s Point72 Asset Management.

As industrywide interest jumped, key hedge funds have been driving this bullishness. Balyasny Asset Management initiated the largest position in Diebold Inc (NYSE:DBD). Balyasny Asset Management had $27.4 million invested in the company at the end of the quarter. Alexander Roepers’ Atlantic Investment Management also initiated a $9 million position during the quarter. The following funds were also among the new DBD investors: Phill Gross and Robert Atchinson’s Adage Capital Management, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Matthew Tewksbury’s Stevens Capital Management.

Let’s go over hedge fund activity in other stocks similar to Diebold Inc (NYSE:DBD). These stocks are Eagle Bancorp, Inc. (NASDAQ:EGBN), Steelcase Inc. (NYSE:SCS), Gannett Co., Inc. (NYSE:GCI), and Shutterfly, Inc. (NASDAQ:SFLY). This group of stocks’ market valuations are closest to DBD’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EGBN 16 32287 4
SCS 18 68883 -2
GCI 18 65906 2
SFLY 23 460368 1

As you can see these stocks had an average of 18.75 hedge funds with bullish positions and the average amount invested in these stocks was $157 million. That figure was $288 million in DBD’s case. Shutterfly, Inc. (NASDAQ:SFLY) is the most popular stock in this table. On the other hand Eagle Bancorp, Inc. (NASDAQ:EGBN) is the least popular one with only 16 bullish hedge fund positions. Diebold Inc (NYSE:DBD) 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 pouring money into. In this regard SFLY might be a better candidate to consider for a long position.

Disclosure: None

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