Is Carmike Cinemas, Inc. (CKEC) Going to Burn These Hedge Funds?
What should smart Carmike Cinemas, Inc. (NASDAQ:CKEC) investors do?
In the 21st century investor’s toolkit, there are a multitude of methods investors can use to analyze Mr. Market. A duo of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top hedge fund managers can outpace the broader indices by a significant amount (see just how much).
Equally as key, optimistic insider trading sentiment is a second way to look at the financial markets. Obviously, there are plenty of motivations for an executive to drop shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the useful potential of this tactic if piggybackers understand where to look (learn more here).
Thus, let's discuss the newest info for Carmike Cinemas, Inc. (NASDAQ:CKEC).
How have hedgies been trading Carmike Cinemas, Inc. (NASDAQ:CKEC)?
In preparation for the third quarter, a total of 14 of the hedge funds we track were bullish in this stock, a change of -30% from the first quarter. With hedge funds' positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their stakes meaningfully.
When using filings from the hedgies we track, Mark Broach's Manatuck Hill Partners had the largest position in Carmike Cinemas, Inc. (NASDAQ:CKEC), worth close to $31.3 million, accounting for 3.8% of its total 13F portfolio. Coming in second is Hirzel Capital Management, managed by Zac Hirzel, which held a $15.4 million position; the fund has 3.7% of its 13F portfolio invested in the stock. Other peers that hold long positions include Jim Simons's Renaissance Technologies, Abby Flamholz and Yehuda Blinder's ADAR Investment Management and Robert B. Gillam's McKinley Capital Management.
Because Carmike Cinemas, Inc. (NASDAQ:CKEC) has faced a fall in interest from the top-tier hedge fund industry, it's safe to say that there is a sect of fund managers that slashed their entire stakes at the end of the second quarter. At the top of the heap, Israel Englander's Millennium Management cut the biggest position of the 450+ funds we watch, comprising close to $2.5 million in stock, and Ken Griffin of Citadel Investment Group was right behind this move, as the fund said goodbye to about $1.6 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 6 funds at the end of the second quarter.
What have insiders been doing with Carmike Cinemas, Inc. (NASDAQ:CKEC)?
Bullish insider trading is best served when the company in question has experienced transactions within the past six months. Over the latest six-month time frame, Carmike Cinemas, Inc. (NASDAQ:CKEC) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll also examine the relationship between both of these indicators in other stocks similar to Carmike Cinemas, Inc. (NASDAQ:CKEC). These stocks are Regal Entertainment Group (NYSE:RGC), Dreamworks Animation Skg Inc (NASDAQ:DWA), Reading International, Inc. (NASDAQ:RDI), RealD (NYSE:RLD), and Rentrak Corporation (NASDAQ:RENT). This group of stocks are the members of the movie production, theaters industry and their market caps are similar to CKEC's market cap.
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling
Regal Entertainment Group (NYSE:RGC)
Dreamworks Animation Skg Inc (NASDAQ:DWA)
Reading International, Inc. (NASDAQ:RDI)
Rentrak Corporation (NASDAQ:RENT)
Using the returns shown by the previously mentioned studies, regular investors should always track hedge fund and insider trading activity, and Carmike Cinemas, Inc. (NASDAQ:CKEC) is no exception.