Is Sears Hometown and Outlet Stores Inc (SHOS) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that sold off their entire stakes in the stock during the third quarter. At the top of the heap, Ken Griffin’s Citadel Investment Group sold off the largest position of the “upper crust” of funds followed by Insider Monkey, totaling an estimated $0.3 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also dumped its stock, about $0.1 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Sears Hometown and Outlet Stores Inc (NASDAQ:SHOS) but similarly valued. We will take a look at Exeter Resource Corp. (NYSEAMEX:XRA), BRT Realty Trust (NYSE:BRT), Mattersight Corporation (NASDAQ:MATR), and A-Mark Precious Metals Inc (NASDAQ:AMRK). This group of stocks’ market valuations match SHOS’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
XRA 4 16543 0
BRT 4 12920 0
MATR 4 5770 0
AMRK 4 1886 1

As you can see these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $9 million. That figure was $45 million in SHOS’s case. Exeter Resource Corp. (NYSEAMEX:XRA) is the most popular stock in this table. On the other hand Exeter Resource Corp. (NYSEAMEX:XRA) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Sears Hometown and Outlet Stores Inc (NASDAQ:SHOS) 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