Hedge Funds Are Dumping DineEquity Inc (DIN)

Due to the fact that DineEquity Inc (NYSE:DIN) has experienced a declination in interest from the smart money, we can see that there lies a certain “tier” of hedge funds that slashed their full holdings by the end of the third quarter. Interestingly, Alexander Mitchell’s Scopus Asset Management dumped the largest position of the “upper crust” of funds monitored by Insider Monkey, comprising about $5 million in stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also sold off its holding, about $1.9 million worth of DIN shares. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 6 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks similar to DineEquity Inc (NYSE:DIN). These stocks are ICU Medical, Incorporated (NASDAQ:ICUI), EXACT Sciences Corporation (NASDAQ:EXAS), DeVry Inc. (NYSE:DV), and Worthington Industries, Inc. (NYSE:WOR). This group of stocks’ market valuations are closest to DIN’s market valuation.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $237 million. That figure was $217 million in DIN’s case. While Worthington Industries, Inc. (NYSE:WOR) is the least popular stock with only 14 bullish hedge fund positions, EXACT Sciences Corporation (NASDAQ:EXAS), ICU Medical, Incorporated (NASDAQ:ICUI) and DineEquity Inc (NYSE:DIN) lead the pack. This is a positive sign and we believe DineEquity Inc (NYSE:DIN) warrants further research to find out whether it is a good candidate for a long position.