Is Cabot Corp (CBT) A Good Stock to Buy?

Due to the fact that Cabot Corp (NYSE:CBT) has experienced declining sentiment from the smart money, we can see that there lies a certain “tier” of money managers who sold off their entire stakes by the end of the third quarter. Intriguingly, Paul Marshall and Ian Wace’s Marshall Wace LLP sold off the largest investment of all the investors studied by Insider Monkey, comprising an estimated $0.7 million in stock. Alec Litowitz and Ross Laser’s fund, Magnetar Capital, also sold off its stock, about $0.3 million worth.

Let’s now take a look at hedge fund activity in other stocks similar to Cabot Corp (NYSE:CBT). These stocks are Outfront Media Inc (NYSE:OUT), Rayonier Inc. (NYSE:RYN), Monolithic Power Systems, Inc. (NASDAQ:MPWR), and World Fuel Services Corporation (NYSE:INT). This group of stocks’ market values are similar to CBT’s market value.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $219 million. That figure was $189 million in CBT’s case. World Fuel Services Corporation (NYSE:INT) is the most popular stock in this table. On the other hand Rayonier Inc. (NYSE:RYN) is the least popular one with only 15 bullish hedge fund positions. Cabot Corp (NYSE:CBT) 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 INT might be a better candidate to consider taking a long position in.

Disclosure: None