Is Avis Budget Group Inc. (CAR) A Good Stock To Buy?

Judging by the fact that Avis Budget Group Inc. (NASDAQ:CAR) has witnessed a decline in interest from the aggregate hedge fund industry, logic holds that there is a sect of funds that slashed their entire stakes during  the third quarter. It’s worth mentioning that Seth Klarman’s Baupost Group said goodbye to the biggest position of all the hedgies watched by Insider Monkey, worth about $57.6 million in stock, and Brett Barakett’s Tremblant Capital was right behind this move, as the fund dumped about $51.4 million worth of the company’s shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Avis Budget Group Inc. (NASDAQ:CAR) but similarly valued. We will take a look at Education Realty Trust, Inc. (NYSE:EDR), NorthWestern Corp (NYSE:NWE), American National Insurance Company (NASDAQ:ANAT), and Popular Inc (NASDAQ:BPOP). All of these stocks’ market caps are closest to CAR’s market cap.

As you can see these stocks had an average of 15 investors holding shares and the average amount invested in these stocks was $199 million, significantly lower than the $1.08 billion figure in CAR’s case. Popular Inc (NASDAQ:BPOP) is the most popular stock in this table. On the other hand NorthWestern Corp (NYSE:NWE) is the least popular one with only 6 bullish hedge fund positions. Avis Budget Group Inc. (NASDAQ:CAR) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Popular Inc (NASDAQ:BPOP) might be a better candidate to consider a long position.

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Disclosure: None