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Dixie Group Inc (DXYN): Are Hedge Funds Right About This Stock?

Because Dixie Group Inc (NASDAQ:DXYN) has experienced a declination in interest from the entirety of the hedge funds we track, it’s safe to say that there is a sect of fund managers that elected to cut their full holdings by the end of the third quarter. Intriguingly, Michael Reeber’s Andalusian Capital Partners cut the biggest position of the 700 funds monitored by Insider Monkey, valued at about $1.4 million in stock, and Renaissance Technologies was right behind this move, as the fund sold off about $0.2 million worth of shares. These transactions are interesting, as aggregate hedge fund interest fell by 1 fund by the end of the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Dixie Group Inc (NASDAQ:DXYN) but similarly valued. These stocks are Unilife Corp (NASDAQ:UNIS), Accuride Corporation (NYSE:ACW), Lantheus Holdings Inc (NASDAQ:LNTH), and Abeona Therapeutics Inc (NASDAQ:ABEO). This group of stocks’ market valuations are closest to Dixie Group Inc (NASDAQ:DXYN)’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
UNIS 4 3188 -4
ACW 13 30594 -1
LNTH 4 11135 -1
ABEO 8 23696 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 $17 million. That figure was $17 million in Dixie Group Inc (NASDAQ:DXYN)’s case. Accuride Corporation (NYSE:ACW) is the most popular stock in this table. On the other hand, Unilife Corp (NASDAQ:UNIS) is the least popular one with only 4 bullish hedge fund positions. Dixie Group Inc (NASDAQ:DXYN) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Accuride Corporation (NYSE:ACW) might be a better candidate to consider a long position.

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