Citi Trends, Inc. (NASDAQ:CTRN) has seen a decrease in hedge fund interest lately.
Just as important, optimistic insider trading activity is another way to parse down the stock market universe. As the old adage goes: there are lots of reasons for a bullish insider to downsize shares of his or her company, but just one, very clear reason why they would behave bullishly. Various empirical studies have demonstrated the impressive potential of this tactic if “monkeys” understand what to do (learn more here).
With these “truths” under our belt, let’s take a peek at the key action encompassing Citi Trends, Inc. (NASDAQ:CTRN).
How are hedge funds trading Citi Trends, Inc. (NASDAQ:CTRN)?
At Q1’s end, a total of 6 of the hedge funds we track were long in this stock, a change of -14% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their holdings substantially.
When looking at the hedgies we track, Nantahala Capital Management, managed by Wilmot B. Harkey and Daniel Mack, holds the largest position in Citi Trends, Inc. (NASDAQ:CTRN). Nantahala Capital Management has a $13.1 million position in the stock, comprising 2.1% of its 13F portfolio. Sitting at the No. 2 spot is Chuck Royce of Royce & Associates, with a $9.8 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other peers that are bullish include Jim Simons’s Renaissance Technologies, Ken Gray and Steve Walsh’s Bryn Mawr Capital and John Overdeck and David Siegel’s Two Sigma Advisors.
Since Citi Trends, Inc. (NASDAQ:CTRN) has witnessed a declination in interest from the aggregate hedge fund industry, it’s safe to say that there were a few hedge funds that decided to sell off their full holdings in Q1. Interestingly, Israel Englander’s Millennium Management said goodbye to the biggest investment of all the hedgies we watch, totaling an estimated $0.3 million in stock.. Mike Vranos’s fund, Ellington, also dropped its stock, about $0.2 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 1 funds in Q1.
What have insiders been doing with Citi Trends, Inc. (NASDAQ:CTRN)?
Insider purchases made by high-level executives is most useful when the primary stock in question has experienced transactions within the past half-year. Over the latest six-month time frame, Citi Trends, Inc. (NASDAQ:CTRN) has experienced 1 unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Citi Trends, Inc. (NASDAQ:CTRN). These stocks are Destination XL Group Inc (NASDAQ:DXLG), Christopher & Banks Corporation (NYSE:CBK), Cherokee Inc. (NASDAQ:CHKE), Pacific Sunwear of California, Inc. (NASDAQ:PSUN), and Body Central Corp (NASDAQ:BODY). All of these stocks are in the apparel stores industry and their market caps are closest to CTRN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Destination XL Group Inc (NASDAQ:DXLG) | 5 | 0 | 8 |
| Christopher & Banks Corporation (NYSE:CBK) | 15 | 6 | 2 |
| Cherokee Inc. (NASDAQ:CHKE) | 0 | 0 | |
| Pacific Sunwear of California, Inc. (NASDAQ:PSUN) | 8 | 0 | 0 |
| Body Central Corp (NASDAQ:BODY) | 11 | 1 | 0 |
With the results exhibited by the aforementioned tactics, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Citi Trends, Inc. (NASDAQ:CTRN) applies perfectly to this mantra.
