Is Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL) undervalued? Investors who are in the know are betting on the stock. The number of bullish hedge fund bets advanced by 1 recently.
In the 21st century investor’s toolkit, there are plenty of metrics shareholders can use to watch publicly traded companies. Some of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top investment managers can trounce the S&P 500 by a solid margin (see just how much).
Equally as beneficial, positive insider trading activity is a second way to break down the marketplace. There are plenty of motivations for an executive to cut shares of his or her company, but just one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the impressive potential of this method if shareholders understand what to do (learn more here).
Now, it’s important to take a peek at the recent action surrounding Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL).
Hedge fund activity in Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL)
At the end of the fourth quarter, a total of 8 of the hedge funds we track were long in this stock, a change of 14% from the third quarter. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes substantially.
When looking at the hedgies we track, Greenlight Capital, managed by David Einhorn, holds the biggest position in Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL). Greenlight Capital has a $131.1 million position in the stock, comprising 2.1% of its 13F portfolio. The second largest stake is held by Jim Simons of Renaissance Technologies, with a $2 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include Chuck Royce’s Royce & Associates, Israel Englander’s Millennium Management and D. E. Shaw’s D E Shaw.
As industrywide interest jumped, some big names were leading the bulls’ herd. Millennium Management, managed by Israel Englander, established the most outsized position in Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL). Millennium Management had 0.7 million invested in the company at the end of the quarter. Joel Greenblatt’s Gotham Asset Management also initiated a $0.3 million position during the quarter.
What do corporate executives and insiders think about Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL)?
Insider buying is particularly usable when the primary stock in question has seen transactions within the past 180 days. Over the latest six-month time frame, Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL) has experienced zero unique insiders buying, and 4 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL). These stocks are Nathan’s Famous, Inc. (NASDAQ:NATH), Ruth’s Hospitality Group, Inc. (NASDAQ:RUTH), Bravo Brio Restaurant Group, Inc. (NASDAQ:BBRG), Luby’s, Inc. (NYSE:LUB), and Jamba, Inc. (NASDAQ:JMBA). All of these stocks are in the restaurants industry and their market caps are closest to BAGL’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Nathan’s Famous, Inc. (NASDAQ:NATH) | 4 | 0 | 2 |
| Ruth’s Hospitality Group, Inc. (NASDAQ:RUTH) | 10 | 0 | 0 |
| Bravo Brio Restaurant Group, Inc. (NASDAQ:BBRG) | 7 | 2 | 0 |
| Luby’s, Inc. (NYSE:LUB) | 2 | 2 | 2 |
| Jamba, Inc. (NASDAQ:JMBA) | 7 | 2 | 1 |
With the results shown by our research, everyday investors should always keep an eye on hedge fund and insider trading sentiment, and Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL) is no exception.
