Is hhgregg, Inc. (NYSE:HGG) a first-rate investment right now? The best stock pickers are getting more optimistic. The number of bullish hedge fund bets inched up by 1 lately.
In today’s marketplace, there are many indicators market participants can use to track their holdings. A duo of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best fund managers can outperform their index-focused peers by a superb margin (see just how much).
Equally as important, positive insider trading activity is a second way to parse down the world of equities. Obviously, there are a variety of motivations for a bullish insider to get rid of shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the valuable potential of this method if piggybackers understand where to look (learn more here).
Consequently, it’s important to take a glance at the latest action regarding hhgregg, Inc. (NYSE:HGG).
Hedge fund activity in hhgregg, Inc. (NYSE:HGG)
In preparation for this quarter, a total of 12 of the hedge funds we track were bullish in this stock, a change of 9% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes meaningfully.
When looking at the hedgies we track, Chuck Royce’s Royce & Associates had the biggest position in hhgregg, Inc. (NYSE:HGG), worth close to $13.2 million, accounting for less than 0.1%% of its total 13F portfolio. Coming in second is Adage Capital Management, managed by Phill Gross and Robert Atchinson, which held a $10.8 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other peers with similar optimism include Cliff Asness’s AQR Capital Management, Joel Greenblatt’s Gotham Asset Management and Neil Chriss’s Hutchin Hill Capital.
As one would reasonably expect, key hedge funds have been driving this bullishness. D E Shaw, managed by D. E. Shaw, initiated the most outsized position in hhgregg, Inc. (NYSE:HGG). D E Shaw had 0.6 million invested in the company at the end of the quarter. Philip Hempleman’s Ardsley Partners also initiated a $0.2 million position during the quarter. The following funds were also among the new HGG investors: Israel Englander’s Millennium Management and Matthew Hulsizer’s PEAK6 Capital Management.
What have insiders been doing with hhgregg, Inc. (NYSE:HGG)?
Insider buying is at its handiest when the company in focus has seen transactions within the past 180 days. Over the last half-year time period, hhgregg, Inc. (NYSE:HGG) has seen zero unique insiders buying, and 1 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to hhgregg, Inc. (NYSE:HGG). These stocks are Best Buy Co., Inc. (NYSE:BBY), GameStop Corp. (NYSE:GME), CONN’S, Inc. (NASDAQ:CONN), , and RadioShack Corporation (NYSE:RSH). All of these stocks are in the electronics stores industry and their market caps are closest to HGG’s market cap.