Is Denny’s Corporation (NASDAQ:DENN) going to take off soon? Hedge funds are selling. The number of bullish hedge fund positions went down by 2 lately.
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Keeping this in mind, let’s take a look at the key action encompassing Denny’s Corporation (NASDAQ:DENN).
How are hedge funds trading Denny’s Corporation (NASDAQ:DENN)?
At year’s end, a total of 9 of the hedge funds we track held long positions in this stock, a change of -18% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their stakes considerably.
Of the funds we track, McKinley Capital Management, managed by Robert B. Gillam, holds the biggest position in Denny’s Corporation (NASDAQ:DENN). McKinley Capital Management has a $4.9 million position in the stock, comprising 0.3% of its 13F portfolio. Sitting at the No. 2 spot is GAMCO Investors, managed by Mario Gabelli, which held a $3.2 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Andy Redleaf’s Whitebox Advisors, Cliff Asness’s AQR Capital Management and Joel Greenblatt’s Gotham Asset Management.
Due to the fact that Denny’s Corporation (NASDAQ:DENN) has experienced a declination in interest from hedge fund managers, logic holds that there lies a certain “tier” of fund managers that decided to sell off their entire stakes heading into 2013. It’s worth mentioning that Brett Hendrickson’s Nokomis Capital dumped the biggest stake of the 450+ funds we track, worth an estimated $1.8 million in stock., and Joseph Vidich of Manalapan Oracle Capital Management was right behind this move, as the fund dropped about $0.7 million worth. These moves are important to note, as aggregate hedge fund interest fell by 2 funds heading into 2013.
How are insiders trading Denny’s Corporation (NASDAQ:DENN)?
Insider buying is most useful when the company in focus has seen transactions within the past six months. Over the latest 180-day time period, Denny’s Corporation (NASDAQ:DENN) 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 Denny’s Corporation (NASDAQ:DENN). These stocks are Fiesta Restaurant Group Inc (NASDAQ:FRGI), Ruby Tuesday, Inc. (NYSE:RT), CEC Entertainment, Inc. (NYSE:CEC), Chuy’s Holdings Inc (NASDAQ:CHUY), and Biglari Holdings Inc (NYSE:BH). This group of stocks belong to the restaurants industry and their market caps are closest to DENN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Fiesta Restaurant Group Inc (NASDAQ:FRGI) | 6 | 1 | 4 |
| Ruby Tuesday, Inc. (NYSE:RT) | 13 | 0 | 5 |
| CEC Entertainment, Inc. (NYSE:CEC) | 9 | 1 | 0 |
| Chuy’s Holdings Inc (NASDAQ:CHUY) | 3 | 0 | 10 |
| Biglari Holdings Inc (NYSE:BH) | 8 | 0 | 0 |
With the results shown by the aforementioned strategies, retail investors must always pay attention to hedge fund and insider trading activity, and Denny’s Corporation (NASDAQ:DENN) applies perfectly to this mantra.
