Ingles Markets, Incorporated (IMKTA): Are Hedge Funds Right About This Stock?

Due to the fact that Ingles Markets, Incorporated (NASDAQ:IMKTA) has gone through bearish sentiment from hedge fund managers, we can see that there was a specific group of fund managers who sold off their full holdings in the third quarter. At the top of the heap, Ken Griffin’s Citadel Investment Group cashed in the biggest stake of all the hedgies followed by Insider Monkey, worth an estimated $0.7 million in call options.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Ingles Markets, Incorporated (NASDAQ:IMKTA) but similarly valued. These stocks are Carmike Cinemas, Inc. (NASDAQ:CKEC), Veeco Instruments Inc. (NASDAQ:VECO), Harsco Corporation (NYSE:HSC), and Federal Signal Corporation (NYSE:FSS). This group of stocks’ market caps match IMKTA’s market cap.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $136 million. That figure was $55 million in IMKTA’s case. Harsco Corporation (NYSE:HSC) is the most popular stock in this table. On the other hand Veeco Instruments Inc. (NASDAQ:VECO) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Ingles Markets, Incorporated (NASDAQ:IMKTA) is even less popular than VECO. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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