In today’s marketplace, there are many methods investors can use to analyze the equity markets. A duo of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite hedge fund managers can outclass their index-focused peers by a very impressive amount (see just how much).
Just as necessary, bullish insider trading sentiment is a second way to look at the marketplace. There are many motivations for an executive to drop shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the market-beating potential of this method if shareholders know where to look (learn more here).
Now that that’s out of the way, we’re going to discuss the newest info about Bloomin’ Brands Inc (NASDAQ:BLMN).
What have hedge funds been doing with Bloomin’ Brands Inc (NASDAQ:BLMN)?
At Q2’s end, a total of 13 of the hedge funds we track were long in this stock, a change of 8% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their stakes considerably.
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With a general bullishness amongst the titans, particular hedge funds have jumped into Bloomin’ Brands Inc (NASDAQ:BLMN) headfirst. SAC Capital Advisors, managed by Steven Cohen, created the most outsized position in Bloomin’ Brands Inc (NASDAQ:BLMN). SAC Capital Advisors had 31.6 million invested in the company at the end of the quarter. SAC Subsidiary’s Sigma Capital Management also made a $29.1 million investment in the stock during the quarter. The other funds with brand new BLMN positions are Ken Griffin’s Citadel Investment Group, Drew Cupps’s Cupps Capital Management, and Glenn J. Krevlin’s Glenhill Advisors.
Insider trading activity in Bloomin’ Brands Inc (NASDAQ:BLMN)
Legal insider trading, particularly when it’s bullish, is at its handiest when the company in focus has seen transactions within the past 180 days. Over the latest half-year time frame, Bloomin’ Brands Inc (NASDAQ:BLMN) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Bloomin’ Brands Inc (NASDAQ:BLMN). These stocks are Arcos Dorados Holding Inc (NYSE:ARCO), Brinker International, Inc. (NYSE:EAT), Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL), The Cheesecake Factory Incorporated (NASDAQ:CAKE), and The Wendy’s Company (NASDAQ:WEN). All of these stocks are in the restaurants industry and their market caps resemble BLMN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Arcos Dorados Holding Inc (NYSE:ARCO) | 9 | 0 | 0 |
| Brinker International, Inc. (NYSE:EAT) | 16 | 0 | 0 |
| Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) | 17 | 0 | 0 |
| The Cheesecake Factory Incorporated (NASDAQ:CAKE) | 15 | 0 | 0 |
| The Wendy’s Company (NASDAQ:WEN) | 21 | 0 | 0 |
Using the returns explained by the previously mentioned studies, average investors must always track hedge fund and insider trading sentiment, and Bloomin’ Brands Inc (NASDAQ:BLMN) applies perfectly to this mantra.
