Dover Motorsports, Inc. (NYSE:DVD) investors should be aware of a decrease in hedge fund interest lately; in our experience, stagnancy is a slightly bearish development.
At the moment, there are a multitude of metrics market participants can use to track stocks. Some of the most useful are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best hedge fund managers can beat the S&P 500 by a significant amount (see just how much).
Just as beneficial, bullish insider trading activity is another way to break down the world of equities. There are plenty of reasons for a corporate insider to sell shares of his or her company, but only one, very simple reason why they would buy. Several academic studies have demonstrated the market-beating potential of this tactic if you understand what to do (learn more here).
With these “truths” under our belt, we’re going to take a glance at the recent action encompassing Dover Motorsports, Inc. (NYSE:DVD).
How have hedgies been trading Dover Motorsports, Inc. (NYSE:DVD)?
Heading into 2013, a total of 6 of the hedge funds we track were bullish in this stock, a change of 0% from the third quarter. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were boosting their stakes meaningfully.
According to our comprehensive database, Jim Roumell’s Roumell Asset Management had the biggest position in Dover Motorsports, Inc. (NYSE:DVD), worth close to $3 million, accounting for 1.9% of its total 13F portfolio. Sitting at the No. 2 spot is Wilmot B. Harkey and Daniel Mack of Nantahala Capital Management, with a $2.9 million position; 0.5% of its 13F portfolio is allocated to the company. Other hedgies that hold long positions include Mario Gabelli’s GAMCO Investors, Paul Reeder and Edward Shapiro’s PAR Capital Management and Jim Simons’s Renaissance Technologies.
How are insiders trading Dover Motorsports, Inc. (NYSE:DVD)?
Insider buying is best served when the company we’re looking at has experienced transactions within the past 180 days. Over the last half-year time period, Dover Motorsports, Inc. (NYSE:DVD) has experienced 1 unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Dover Motorsports, Inc. (NYSE:DVD). These stocks are Life Time Fitness, Inc. (NYSE:LTM), International Speedway Corporation (NASDAQ:ISCA), Speedway Motorsports, Inc. (NYSE:TRK), and Town Sports International Holdings, Inc. (NASDAQ:CLUB). This group of stocks belong to the sporting activities industry and their market caps are closest to DVD’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Life Time Fitness, Inc. (NYSE:LTM) | 5 | 1 | 4 |
| International Speedway Corporation (NASDAQ:ISCA) | 12 | 0 | 0 |
| Speedway Motorsports, Inc. (NYSE:TRK) | 5 | 1 | 1 |
| Town Sports International Holdings, Inc. (NASDAQ:CLUB) | 12 | 1 | 5 |
With the returns shown by our strategies, retail investors should always keep an eye on hedge fund and insider trading activity, and Dover Motorsports, Inc. (NYSE:DVD) is an important part of this process.
