Is Tim Hortons Inc. (USA) (NYSE:THI) a good investment?
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Now that that’s out of the way, let’s discuss the recent info for Tim Hortons Inc. (USA) (NYSE:THI).
What have hedge funds been doing with Tim Hortons Inc. (USA) (NYSE:THI)?
In preparation for the third quarter, a total of 23 of the hedge funds we track were long in this stock, a change of 109% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their stakes substantially.
When using filings from the hedgies we track, James Crichton and Adam Weiss’s Scout Capital Management had the most valuable position in Tim Hortons Inc. (USA) (NYSE:THI), worth close to $454.7 million, comprising 7.4% of its total 13F portfolio. Sitting at the No. 2 spot is Jonathon Jacobson of Highfields Capital Management, with a $209.7 million position; the fund has 1.7% of its 13F portfolio invested in the stock. Some other peers that are bullish include Christian Leone’s Luxor Capital Group, Patrick McCormack’s Tiger Consumer Management and Frank Brosens’s Taconic Capital.
As industrywide interest increased, particular hedge funds were breaking ground themselves. Scout Capital Management, managed by James Crichton and Adam Weiss, established the most outsized position in Tim Hortons Inc. (USA) (NYSE:THI). Scout Capital Management had 454.7 million invested in the company at the end of the quarter. Jonathon Jacobson’s Highfields Capital Management also made a $209.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Christian Leone’s Luxor Capital Group, Patrick McCormack’s Tiger Consumer Management, and Frank Brosens’s Taconic Capital.
What do corporate executives and insiders think about Tim Hortons Inc. (USA) (NYSE:THI)?
Legal insider trading, particularly when it’s bullish, is at its handiest when the company in focus has experienced transactions within the past six months. Over the latest half-year time frame, Tim Hortons Inc. (USA) (NYSE:THI) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to Tim Hortons Inc. (USA) (NYSE:THI). These stocks are Domino’s Pizza, Inc. (NYSE:DPZ), Dunkin Brands Group Inc (NASDAQ:DNKN), Darden Restaurants, Inc. (NYSE:DRI), Burger King Worldwide Inc (NYSE:BKW), and Chipotle Mexican Grill, Inc. (NYSE:CMG). All of these stocks are in the restaurants industry and their market caps are similar to THI’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Domino’s Pizza, Inc. (NYSE:DPZ)||25||0||0|
|Dunkin Brands Group Inc (NASDAQ:DNKN)||18||0||0|
|Darden Restaurants, Inc. (NYSE:DRI)||21||0||0|
|Burger King Worldwide Inc (NYSE:BKW)||14||0||0|
|Chipotle Mexican Grill, Inc. (NYSE:CMG)||28||0||0|
Using the returns demonstrated by our analyses, average investors should always watch hedge fund and insider trading activity, and Tim Hortons Inc. (USA) (NYSE:THI) is no exception.