Should You Avoid Fiesta Restaurant Group Inc (FRGI)?

Fiesta Restaurant Group Inc (NASDAQ:FRGI) has experienced a decrease in hedge fund interest in recent months; our research shows that stagnancy is a slightly bearish development.

At the moment, there are plenty of metrics investors can use to watch stocks. Two of the most useful are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite money managers can outclass the broader indices by a significant amount (see just how much).

Fiesta Restaurant Group Inc (NASDAQ:FRGI)

Equally as important, positive insider trading sentiment is another way to break down the marketplace. Obviously, there are plenty of reasons for an insider to get rid of shares of his or her company, but just one, very obvious reason why they would behave bullishly. Various empirical studies have demonstrated the useful potential of this strategy if shareholders understand where to look (learn more here).

Consequently, we’re going to take a gander at the latest action regarding Fiesta Restaurant Group Inc (NASDAQ:FRGI).

Hedge fund activity in Fiesta Restaurant Group Inc (NASDAQ:FRGI)

Heading into 2013, a total of 6 of the hedge funds we track held long positions in this stock, a change of 0% from the third quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their stakes substantially.

When looking at the hedgies we track, Private Capital Management, managed by Gregg J. Powers, holds the largest position in Fiesta Restaurant Group Inc (NASDAQ:FRGI). Private Capital Management has a $6.6 million position in the stock, comprising 0.6% of its 13F portfolio. The second largest stake is held by Royce & Associates, managed by Chuck Royce, which held a $5.2 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other hedge funds that are bullish include Richard Driehaus’s Driehaus Capital, Carl Tiedemann and Michael Tiedemann’s TIG Advisors and Jim Simons’s Renaissance Technologies.

How have insiders been trading Fiesta Restaurant Group Inc (NASDAQ:FRGI)?

Insider buying is at its handiest when the company in focus has experienced transactions within the past half-year. Over the last 180-day time period, Fiesta Restaurant Group Inc (NASDAQ:FRGI) has experienced 1 unique insiders purchasing, and 4 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Fiesta Restaurant Group Inc (NASDAQ:FRGI). These stocks are Denny’s Corporation (NASDAQ:DENN), Chuy’s Holdings Inc (NASDAQ:CHUY), Sonic Corporation (NASDAQ:SONC), CEC Entertainment, Inc. (NYSE:CEC), and Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB). This group of stocks are the members of the restaurants industry and their market caps match FRGI’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Denny’s Corporation (NASDAQ:DENN) 9 0 0
Chuy’s Holdings Inc (NASDAQ:CHUY) 3 0 10
Sonic Corporation (NASDAQ:SONC) 10 0 6
CEC Entertainment, Inc. (NYSE:CEC) 9 1 0
Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) 10 0 3

With the returns exhibited by Insider Monkey’s studies, everyday investors should always keep an eye on hedge fund and insider trading activity, and Fiesta Restaurant Group Inc (NASDAQ:FRGI) is no exception.

Click here to learn why you should track hedge funds