Should You Buy Boot Barn Holdings Inc (BOOT)?

Judging by the fact that Boot Barn Holdings Inc (NYSE:BOOT) has gone through staid interest from the smart money, it’s safe to say that there was a specific group of hedgies that decided to sell off their positions entirely last quarter. It’s worth mentioning that Mark Coe’s Coe Capital Management cut the biggest position of all the hedgies tracked by Insider Monkey, comprising an estimated $0.8 million in stock. Jim Simons’ fund, Renaissance Technologies, also cut its stock, about $0.5 million worth.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Boot Barn Holdings Inc (NYSE:BOOT) but similarly valued. These stocks are Edge Therapeutics Inc (NASDAQ:EDGE), Big 5 Sporting Goods Corporation (NASDAQ:BGFV), Nature’s Sunshine Prod. (NASDAQ:NATR), and Proteostasis Therapeutics Inc (NASDAQ:PTI). This group of stocks’ market values are closest to BOOT’s market value.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $69 million. That figure was $29 million in BOOT’s case. Big 5 Sporting Goods Corporation (NASDAQ:BGFV) is the most popular stock in this table. On the other hand Edge Therapeutics Inc (NASDAQ:EDGE) is the least popular one with only 3 bullish hedge fund positions. Boot Barn Holdings Inc (NYSE:BOOT) is not the least popular stock in this group but hedge fund interest is just average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard BGFV might be a better candidate to consider taking a long position in.

Disclosure: None