We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: 999. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case here because only one of the 700+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was MAST Capital).
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Everi Holdings Inc (NYSE:EVRI) but similarly valued. We will take a look at American Vanguard Corp. (NYSE:AVD), Enova International Inc (NYSE:ENVA), First Bancorp (NASDAQ:FBNC), and InnerWorkings, Inc. (NASDAQ:INWK). This group of stocks’ market caps matches Everi Holdings Inc (NYSE:EVRI)’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AVD | 6 | 19176 | 0 |
| ENVA | 14 | 43395 | -2 |
| FBNC | 9 | 39354 | 1 |
| INWK | 11 | 88455 | -1 |
As you can see, these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $48 million. That figure was $98 million in Everi Holdings Inc (NYSE:EVRI)’s case. Enova International Inc (NYSE:ENVA) is the most popular stock in this table. On the other hand, American Vanguard Corp. (NYSE:AVD) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks, Everi Holdings Inc (NYSE:EVRI) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.