Pier 1 Imports, Inc. (NYSE:PIR) has experienced a decrease in hedge fund interest in recent months.
In the financial world, there are many methods investors can use to analyze Mr. Market. A couple of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top money managers can outclass the market by a superb amount (see just how much).
Just as important, bullish insider trading sentiment is a second way to break down the investments you’re interested in. Obviously, there are a variety of reasons for a bullish insider to sell shares of his or her company, but only one, very obvious reason why they would buy. Various academic studies have demonstrated the useful potential of this tactic if you understand where to look (learn more here).
With all of this in mind, it’s important to take a look at the key action encompassing Pier 1 Imports, Inc. (NYSE:PIR).
What does the smart money think about Pier 1 Imports, Inc. (NYSE:PIR)?
Heading into 2013, a total of 13 of the hedge funds we track were bullish in this stock, a change of -7% from the third quarter. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were upping their stakes significantly.
Of the funds we track, Donald Chiboucis’s Columbus Circle Investors had the largest position in Pier 1 Imports, Inc. (NYSE:PIR), worth close to $57 million, comprising 0.5% of its total 13F portfolio. On Columbus Circle Investors’s heels is Royce & Associates, managed by Chuck Royce, which held a $24 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other peers that hold long positions include Cliff Asness’s AQR Capital Management, Mario Gabelli’s GAMCO Investors and Robert Bishop’s Impala Asset Management.
Judging by the fact that Pier 1 Imports, Inc. (NYSE:PIR) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of hedge funds that elected to cut their entire stakes last quarter. At the top of the heap, SAC Subsidiary’s CR Intrinsic Investors cut the largest investment of the 450+ funds we monitor, valued at an estimated $4 million in stock.. Richard Schimel’s fund, Diamondback Capital, also dumped its stock, about $3 million worth. These moves are interesting, as total hedge fund interest fell by 1 funds last quarter.
What have insiders been doing with Pier 1 Imports, Inc. (NYSE:PIR)?
Insider trading activity, especially when it’s bullish, is most useful when the company in question has seen transactions within the past six months. Over the latest six-month time frame, Pier 1 Imports, Inc. (NYSE:PIR) has experienced zero unique insiders buying, and 6 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Pier 1 Imports, Inc. (NYSE:PIR). These stocks are Gordmans Stores, Inc. (NASDAQ:GMAN), Bed Bath & Beyond Inc. (NASDAQ:BBBY), Haverty Furniture Companies, Inc. (NYSE:HVT), Williams-Sonoma, Inc. (NYSE:WSM), and Restoration Hardware Holdings Inc (NYSE:RH). This group of stocks belong to the home furnishing stores industry and their market caps are similar to PIR’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Gordmans Stores, Inc. (NASDAQ:GMAN) | 5 | 0 | 0 |
| Bed Bath & Beyond Inc. (NASDAQ:BBBY) | 30 | 0 | 4 |
| Haverty Furniture Companies, Inc. (NYSE:HVT) | 9 | 0 | 9 |
| Williams-Sonoma, Inc. (NYSE:WSM) | 22 | 0 | 7 |
| Restoration Hardware Holdings Inc (NYSE:RH) | 9 | 2 | 2 |
With the results exhibited by Insider Monkey’s research, retail investors must always pay attention to hedge fund and insider trading sentiment, and Pier 1 Imports, Inc. (NYSE:PIR) is an important part of this process.
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