Is Dunkin Brands Group Inc (DNKN) a Good Stock To Buy?

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We already know that not all hedge funds are bullish on the stock and some hedge funds actually sold off their positions entirely. At the top of the heap, Eashwar Krishnan’s Tybourne Capital Management sold off the biggest stake of all the hedgies studied by Insider Monkey, comprising an estimated $67.3 million in stock, and Aaron Cowen’s Suvretta Capital Management was right behind this move, as the fund dumped about $32.7 million worth of shares.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Dunkin Brands Group Inc (NASDAQ:DNKN) but similarly valued. We will take a look at Arris Group, Inc. (NASDAQ:ARRS), Validus Holdings, Ltd. (NYSE:VR), Bright Horizons Family Solutions Inc (NYSE:BFAM), and DCP Midstream Partners, LP (NYSE:DPM). This group of stocks’ market caps are closest to DNKN’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ARRS 39 1254065 3
VR 17 220326 -2
BFAM 12 86899 -3
DPM 8 21744 0

As you can see these stocks had an average of 19 investors holding long positions and the average amount invested in these stocks was $396 million. That figure was $557 million in DNKN’s case. Arris Group, Inc. (NASDAQ:ARRS) is the most popular stock in this table, while DCP Midstream Partners, LP (NYSE:DPM) is the least popular one with only eight investors having reported bullish bets. Dunkin Brands Group Inc (NASDAQ:DNKN) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Arris Group, Inc. (NASDAQ:ARRS) might be a better candidate to consider taking a long position in.

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