Is Kirkland’s, Inc. (KIRK) Worthy of Your Portfolio?

Due to the fact that Kirkland’s, Inc. (NASDAQ:KIRK) has encountered bearish sentiment from the smart money, logic holds that there were a few hedge funds that decided to sell off their entire stakes last quarter. It’s worth mentioning that Charles Paquelet’s Skylands Capital cashed in the biggest position of all the hedgies tracked by Insider Monkey, valued at an estimated $0.5 million in stock, and Glenn Russell Dubin’s Highbridge Capital Management was right behind this move, as the fund cut about $0.3 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Kirkland’s, Inc. (NASDAQ:KIRK) but similarly valued. These stocks are HC2 Holdings Inc (NYSEMKT:HCHC), Sterling Construction Company, Inc. (NASDAQ:STRL), Lifetime Brands Inc (NASDAQ:LCUT), and Asterias Biotherapeutics Inc (NYSEMKT:AST). This group of stocks’ market caps match KIRK’s market cap.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $12 million. That figure was $55 million in KIRK’s case. HC2 Holdings Inc (NYSEMKT:HCHC) is the most popular stock in this table. On the other hand Lifetime Brands Inc (NASDAQ:LCUT) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Kirkland’s, Inc. (NASDAQ:KIRK) 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.

Disclosure: None