Is Dillard’s, Inc. (DDS) A Good Stock To Buy?

As aggregate interest increased, some big names have been driving this bullishness. Royce & Associates, managed by Chuck Royce, created the most outsized position in Dillard’s, Inc. (NYSE:DDS). Royce & Associates had $54.7 million invested in the company at the end of the quarter. John Tompkins’s Tyvor Capital also made an $7.9 million investment in the stock during the quarter. The other funds with brand new DDS positions are D. E. Shaw’s D E Shaw, Paul Marshall and Ian Wace’s Marshall Wace LLP, and George Hall’s Clinton Group.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Dillard’s, Inc. (NYSE:DDS) but similarly valued. We will take a look at Kirby Corporation (NYSE:KEX), Atmel Corporation (NASDAQ:ATML), Sovran Self Storage Inc (NYSE:SSS), and Qlik Technologies Inc (NASDAQ:QLIK). This group of stocks’ market caps match DDS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
KEX 26 571530 -4
ATML 35 265929 -1
SSS 19 382044 4
QLIK 38 871897 6

As you can see these stocks had an average of 29.5 hedge funds with bullish positions and the average amount invested in these stocks was $523 million. That figure was $321 million in DDS’s case. Qlik Technologies Inc (NASDAQ:QLIK) is the most popular stock in this table. On the other hand Sovran Self Storage Inc (NYSE:SSS) is the least popular one with only 19 bullish hedge fund positions. Dillard’s, Inc. (NYSE:DDS) 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 QLIK might be a better candidate to consider a long position.