Is 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. The top picks of these firms have historically outperformed the market when we account for known risk factors, making them very valuable investment ideas.
1-800-FLOWERS.COM is a specialty retailer, whose stock embarked on a downtrend at the beginning of July and has lost around 21% since then. Moreover, it has witnessed a decrease in support from the world’s most elite money managers in the third quarter. However, he level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. That’s why at the end of this article we will examine companies such as Avianca Holdings SA (ADR) (NYSE:AVH), WCI Communities Inc (NYSE:WCIC), and H&E Equipment Services, Inc. (NASDAQ:HEES) to gather more data points.
Follow 1 800 Flowers Com Inc (NASDAQ:FLWS)
Follow 1 800 Flowers Com Inc (NASDAQ:FLWS)
In today’s marketplace there are a multitude of methods market participants can use to size up their holdings. A pair of the best methods are hedge fund and insider trading signals. Our experts have shown that, historically, those who follow the best picks of the top money managers can outpace the S&P 500 by a solid margin (see the details here).
With all of this in mind, we’re going to review the latest action encompassing 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS).
What does the smart money think about 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS)?
At the end of the third quarter, a total of 11 of the hedge funds tracked by Insider Monkey were bullish on this stock, down by 45% over the quarter. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Third Avenue Management, managed by Martin Whitman, holds the largest position in 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS). Third Avenue Management has a $5.9 million position in the stock, comprising 0.2% of its 13F portfolio. On Third Avenue Management’s heels is GAMCO Investors, managed by Mario Gabelli, which holds a $5.9 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other professional money managers that hold long positions encompass Cliff Asness’s AQR Capital Management, George McCabe’s Portolan Capital Management, and D. E. Shaw’s D E Shaw.
Because 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) has experienced falling interest from hedge fund managers, it’s easy to see that there was a specific group of fund managers that elected to cut their full holdings in the third quarter. At the top of the heap, Israel Englander’s Millennium Management said goodbye to the largest investment of the 700 funds monitored by Insider Monkey, totaling an estimated $2.2 million in stock. Renaissance Technologies, also cut its stock, about $1.8 million worth. These transactions are important to note, as aggregate hedge fund interest fell by 9 funds in the third quarter.
Let’s also examine hedge fund activity in other stocks similar to 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS). These stocks are Avianca Holdings SA (ADR) (NYSE:AVH), WCI Communities Inc (NYSE:WCIC), H&E Equipment Services, Inc. (NASDAQ:HEES), and ICF International Inc (NASDAQ:ICFI). This group of stocks’ market values are closest to FLWS’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AVH | 4 | 2605 | 0 |
| WCIC | 22 | 165193 | 8 |
| HEES | 11 | 26047 | -6 |
| ICFI | 14 | 70187 | 1 |
As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $66 million, compared to $33 million in FLWS’s case. WCI Communities Inc (NYSE:WCIC) is the most popular stock in this table. On the other hand Avianca Holdings SA (ADR) (NYSE:AVH) is the least popular one with only 4 bullish hedge fund positions. 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) is not the least popular stock in this group, but hedge fund interest is still below 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 WCIC might be a better candidate to consider a long position.
