Is Dicks Sporting Goods Inc (DKS) a Good Buy?

Judging by the fact that Dicks Sporting Goods Inc (NYSE:DKS) has faced declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of funds that elected to cut their entire stakes heading into Q4. Intriguingly, Gabriel Plotkin’s Melvin Capital Management cut the biggest stake of the “upper crust” of funds watched by Insider Monkey, worth close to $32.4 million in stock, and Joel Greenblatt’s Gotham Asset Management was right behind this move, as the fund sold off about $31.9 million worth. These transactions are important to note, as aggregate hedge fund interest fell by 6 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Dicks Sporting Goods Inc (NYSE:DKS) but similarly valued. These stocks are Packaging Corp Of America (NYSE:PKG), Rollins, Inc. (NYSE:ROL), Antero Resources Corp (NYSE:AR), and Markit Ltd (NASDAQ:MRKT). This group of stocks’ market valuations match DKS’s market valuation.

As you can see these stocks had an average of 20.25 hedge funds with bullish positions and the average amount invested in these stocks was $399 million. That figure was $340 million in DKS’s case. Antero Resources Corp (NYSE:AR) is the most popular stock in this table. On the other hand Markit Ltd (NASDAQ:MRKT) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks Dicks Sporting Goods Inc (NYSE:DKS) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.