Here is What Hedge Funds Think About Speedway Motorsports, Inc. (TRK)

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Gotham Asset Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Springbok Capital).

Let’s now take a look at hedge fund activity in other stocks similar to Speedway Motorsports, Inc. (NYSE:TRK). These stocks are Piper Jaffray Companies (NYSE:PJC), Silver Spring Networks Inc (NYSE:SSNI), Pacific Premier Bancorp, Inc. (NASDAQ:PPBI), and Novocure Ltd (NASDAQ:NVCR). This group of stocks’ market caps match TRK’s market cap.

As you can see these stocks had an average of 10 funds with bullish positions and the average amount invested in these stocks was $29 million. That figure was $20 million in TRK’s case. Silver Spring Networks Inc (NYSE:SSNI) is the most popular stock in this table. On the other hand Piper Jaffray Companies (NYSE:PJC) is the least popular one with only seven bullish hedge fund positions. Speedway Motorsports, Inc. (NYSE:TRK) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SSNI might be a better candidate to consider taking a long position in.

Disclosure: none