Is Black Knight Financial Services Inc (BKFS) A Good Stock To Buy?

Due to the fact that Black Knight Financial Services Inc (NYSE:BKFS) has experienced a declining sentiment from the aggregate hedge fund industry, logic holds that there was a specific group of money managers that slashed their full holdings last quarter. It’s worth mentioning that Larry Robbins’s Glenview Capital dumped the biggest stake of the 700 funds tracked by Insider Monkey, valued at close to $15.7 million in stock. Barry Rosenstein’s fund, JANA Partners, also dropped its stock, about $12.3 million worth of shares. These moves are interesting, as total hedge fund interest was cut by 4 funds last quarter.

Let’s also examine hedge fund activity in other stocks similar to Black Knight Financial Services Inc (NYSE:BKFS). We will take a look at LendingClub Corp (NYSE:LC), Albemarle Corporation (NYSE:ALB), Equity Lifestyle Properties, Inc. (NYSE:ELS), and Owens Corning (NYSE:OC). This group of stocks’ market valuations is closest to Black Knight Financial Services Inc (NYSE:BKFS)’s market valuation.

As you can see, these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $604 million. That figure was $42 million in Black Knight Financial Services Inc (NYSE:BKFS)’s case. Owens Corning (NYSE:OC) is the most popular stock in this table. On the other hand, Equity Lifestyle Properties, Inc. (NYSE:ELS) is the least popular one with only 13 bullish hedge fund positions. Black Knight Financial Services Inc (NYSE:BKFS) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Owens Corning (NYSE:OC) might be a better candidate to consider a long position.