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Is Hibbett Sports, Inc. (HIBB) A Good Stock To Buy?

Due to the fact that Hibbett Sports, Inc. (NASDAQ:HIBB) has encountered a decline in interest from the smart money, it’s safe to say that there was a specific group of fund managers who sold off their full holdings by the end of the third quarter. At the top of the heap, Israel Englander’s Millennium Management, one of the 10 largest hedge funds in the world, sold off the largest investment of all the investors studied by Insider Monkey, worth an estimated $9.8 million in stock, and Jim Simons’ Renaissance Technologies was right behind this move, as the fund dropped about $4.4 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to Hibbett Sports, Inc. (NASDAQ:HIBB). We will take a look at NutriSystem Inc. (NASDAQ:NTRI), Lydall, Inc. (NYSE:LDL), HealthStream, Inc. (NASDAQ:HSTM), and Incontact Inc (NASDAQ:SAAS). This group of stocks’ market valuations are closest to HIBB’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NTRI 19 152587 -4
LDL 12 67062 -1
HSTM 9 28378 0
SAAS 20 200190 -4

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $112 million. That figure was $22 million in HIBB’s case. Incontact Inc (NASDAQ:SAAS) is the most popular stock in this table. On the other hand HealthStream, Inc. (NASDAQ:HSTM) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Hibbett Sports, Inc. (NASDAQ:HIBB) is even less popular than HSTM. 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.

Disclosure: None