Is Isle of Capri Casinos (NASDAQ:ISLE) going to take off soon? Investors who are in the know are taking a pessimistic view. The number of bullish hedge fund bets stayed the same which is a slightly negative development in our experience
In the financial world, there are plenty of gauges investors can use to watch stocks. A pair of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can outperform their index-focused peers by a superb amount (see just how much).
Equally as key, positive insider trading sentiment is another way to parse down the world of equities. Just as you’d expect, there are plenty of stimuli for an insider to cut shares of his or her company, but only one, very clear reason why they would buy. Various academic studies have demonstrated the market-beating potential of this tactic if piggybackers know what to do (learn more here).
Now, we’re going to take a glance at the latest action surrounding Isle of Capri Casinos (NASDAQ:ISLE).
What have hedge funds been doing with Isle of Capri Casinos (NASDAQ:ISLE)?
Heading into Q2, a total of 8 of the hedge funds we track were bullish in this stock, a change of 0% from one quarter earlier. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings meaningfully.
When looking at the hedgies we track, Chuck Royce’s Royce & Associates had the most valuable position in Isle of Capri Casinos (NASDAQ:ISLE), worth close to $8.5 million, comprising less than 0.1%% of its total 13F portfolio. The second largest stake is held by Paul Reeder and Edward Shapiro of PAR Capital Management, with a $8.1 million position; 0.3% of its 13F portfolio is allocated to the stock. Other hedge funds that hold long positions include Geoffrey Raynor’s Q Investments (Specter Holdings), D. E. Shaw’s D E Shaw and Jim Simons’s Renaissance Technologies.
Since Isle of Capri Casinos (NASDAQ:ISLE) has faced a declination in interest from the smart money, it’s safe to say that there were a few fund managers that slashed their positions entirely in Q1. It’s worth mentioning that Andy Redleaf’s Whitebox Advisors dumped the biggest investment of all the hedgies we watch, totaling close to $0.4 million in stock. These transactions are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
How are insiders trading Isle of Capri Casinos (NASDAQ:ISLE)?
Insider buying is at its handiest when the company we’re looking at has experienced transactions within the past half-year. Over the latest 180-day time period, Isle of Capri Casinos (NASDAQ:ISLE) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Isle of Capri Casinos (NASDAQ:ISLE). These stocks are Boyd Gaming Corporation (NYSE:BYD), MTR Gaming Group, Inc. (NASDAQ:MNTG), Monarch Casino & Resort, Inc. (NASDAQ:MCRI), The Marcus Corporation (NYSE:MCS), and Bluegreen Corporation (NYSE:BXG). This group of stocks are in the resorts & casinos industry and their market caps are similar to ISLE’s market cap.