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Hedge Funds Are Dumping Good Times Restaurants Inc. (GTIM)

Because Good Times Restaurants Inc. (NASDAQ:GTIM) has faced a bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there exists a select few funds that decided to sell off their positions entirely last quarter. At the top of the heap, Peter S. Park’s Park West Asset Management said goodbye to the biggest stake of the 700 funds monitored by Insider Monkey, comprising about $0.7 million in stock. Philip Hempleman’s fund, Ardsley Partners, also dropped its stock, about $0.4 million worth of shares. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 4 funds last quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Good Times Restaurants Inc. (NASDAQ:GTIM) but similarly valued. These stocks are Biota Pharmaceuticals Inc (NASDAQ:BOTA), IRIDEX Corporation (NASDAQ:IRIX), Approach Resources Inc. (NASDAQ:AREX), and First South Bancorp, Inc. (NASDAQ:FSBK). All of these stocks’ market caps match Good Times Restaurants Inc. (NASDAQ:GTIM)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BOTA 5 8715 -3
IRIX 4 3012 2
AREX 4 7014 -4
FSBK 4 5963 0

As you can see, these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $6 million. That figure was $13 million in Good Times Restaurants Inc. (NASDAQ:GTIM)’s case. Biota Pharmaceuticals Inc (NASDAQ:BOTA) is the most popular stock in this table. On the other hand, IRIDEX Corporation (NASDAQ:IRIX) is the least popular one with only 4 bullish hedge fund positions. Good Times Restaurants Inc. (NASDAQ:GTIM) 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, Biota Pharmaceuticals Inc (NASDAQ:BOTA) might be a better candidate to consider a long position.

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