Is Landec Corporation (LNDC) Going To Burn Investors?

Due to the fact that Landec Corporation (NASDAQ:LNDC) has weathered bearish sentiment from the aggregate hedge fund industry, we can see that there were a few hedgies that decided to sell off their full holdings last quarter. At the top of the heap, Glenn Russell Dubin’s Highbridge Capital Management dropped the largest stake of the “upper crust” of funds monitored by Insider Monkey, valued at close to $0.2 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also dumped its stock, about $0.1 million worth.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Landec Corporation (NASDAQ:LNDC) but similarly valued. These stocks are Habit Restaurants Inc (NASDAQ:HABT), Johnson Outdoors Inc. (NASDAQ:JOUT), Horizon Global Corp (NYSE:HZN), and Invacare Corporation (NYSE:IVC). This group of stocks’ market valuations are similar to LNDC’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HABT 13 41765 -1
JOUT 6 11001 2
HZN 19 73027 6
IVC 15 79085 1

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $51 million. That figure was $66 million in LNDC’s case. Horizon Global Corp (NYSE:HZN) is the most popular stock in this table. On the other hand Johnson Outdoors Inc. (NASDAQ:JOUT) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Landec Corporation (NASDAQ:LNDC) is only as popular as JOUT. 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.

Disclosure: None