Hedge Funds Are Dumping Citi Trends, Inc. (CTRN)

Seeing as Citi Trends, Inc. (NASDAQ:CTRN) has faced a declining sentiment from hedge fund managers, we can see that there was a specific group of money managers that slashed their full holdings last quarter. It’s worth mentioning that Neil Chriss’ Hutchin Hill Capital dumped the biggest stake of the 700 funds tracked by Insider Monkey, comprising an estimated $0.5 million in stock. Joel Greenblatt’s fund, Gotham Asset Management, also dumped its stock, about $0.5 million worth. These moves are important to note, as total hedge fund interest fell by 2 funds last quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Citi Trends, Inc. (NASDAQ:CTRN) but similarly valued. We will take a look at Schnitzer Steel Industries, Inc. (NASDAQ:SCHN), First Foundation Inc (NASDAQ:FFWM), Bazaarvoice Inc (NASDAQ:BV), and Chase Corporation (NYSEMKT:CCF). This group of stocks’ market caps is closest to Citi Trends, Inc. (NASDAQ:CTRN)’s market cap.

As you can see, these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $62 million. That figure was $61 million in Citi Trends, Inc. (NASDAQ:CTRN)’s case. Schnitzer Steel Industries, Inc. (NASDAQ:SCHN) is the most popular stock in this table. On the other hand, Chase Corporation (NYSEMKT:CCF) is the least popular one with only six bullish hedge fund positions. Citi Trends, Inc. (NASDAQ:CTRN) 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 SCHN might be a better candidate to consider for a long position.