To the average investor, there are tons of metrics shareholders can use to track Mr. Market. A pair of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite hedge fund managers can trounce the broader indices by a significant margin (see just how much).
Equally as key, positive insider trading activity is a second way to look at the financial markets. Obviously, there are a number of motivations for an executive to downsize shares of his or her company, but just one, very clear reason why they would behave bullishly. Several empirical studies have demonstrated the useful potential of this method if shareholders know where to look (learn more here).
Furthermore, let’s analyze the newest info for Kirkland’s, Inc. (NASDAQ:KIRK).
What have hedge funds been doing with Kirkland’s, Inc. (NASDAQ:KIRK)?
Heading into Q3, a total of 14 of the hedge funds we track held long positions in this stock, a change of 17% from the first quarter. With hedgies’ sentiment swirling, there exists a select group of key hedge fund managers who were increasing their holdings considerably.
Out of the hedge funds we follow, Royce & Associates, managed by Chuck Royce, holds the largest position in Kirkland’s, Inc. (NASDAQ:KIRK). Royce & Associates has a $20.3 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by John Overdeck and David Siegel of Two Sigma Advisors, with a $2.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Peter Algert and Kevin Coldiron’s Algert Coldiron Investors, and Glenn Russell Dubin’s Highbridge Capital Management.
As aggregate interest spiked, particular hedge funds have been driving this bullishness. Royce & Associates, managed by Chuck Royce, created the most valuable position in Kirkland’s, Inc. (NASDAQ:KIRK). Royce & Associates had 20.3 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $2.1 million investment in the stock during the quarter. The other funds with new positions in the stock are Peter Algert and Kevin Coldiron’s Algert Coldiron Investors, Matthew Hulsizer’s PEAK6 Capital Management, and Glenn Russell Dubin’s Highbridge Capital Management.
How are insiders trading Kirkland’s, Inc. (NASDAQ:KIRK)?
Insider buying made by high-level executives is particularly usable when the company in question has seen transactions within the past six months. Over the latest half-year time frame, Kirkland’s, Inc. (NASDAQ:KIRK) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Kirkland’s, Inc. (NASDAQ:KIRK). These stocks are Williams-Sonoma, Inc. (NYSE:WSM), Pier 1 Imports, Inc. (NYSE:PIR), Restoration Hardware Holdings Inc (NYSE:RH), Haverty Furniture Companies, Inc. (NYSE:HVT), and Gordmans Stores, Inc. (NASDAQ:GMAN). This group of stocks belong to the home furnishing stores industry and their market caps are closest to KIRK’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Williams-Sonoma, Inc. (NYSE:WSM) | 13 | 0 | 0 |
| Pier 1 Imports, Inc. (NYSE:PIR) | 18 | 0 | 0 |
| Restoration Hardware Holdings Inc (NYSE:RH) | 15 | 0 | 0 |
| Haverty Furniture Companies, Inc. (NYSE:HVT) | 12 | 0 | 0 |
| Gordmans Stores, Inc. (NASDAQ:GMAN) | 5 | 0 | 0 |
Using the returns demonstrated by the previously mentioned strategies, regular investors should always watch hedge fund and insider trading activity, and Kirkland’s, Inc. (NASDAQ:KIRK) applies perfectly to this mantra.
