Is Capitol Federal Financial, Inc. (CFFN) A Good Stock To Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dropped their positions entirely. Intriguingly, Michael Platt and William Reeves’ BlueCrest Capital Mgmt. dropped the largest investment of the 700 funds monitored by Insider Monkey, worth an estimated $0.1 million in stock, and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners was right behind this move, as the fund dumped about $0.1 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Capitol Federal Financial, Inc. (NASDAQ:CFFN) but similarly valued. These stocks are Revlon Inc (NYSE:REV), Bloomin’ Brands Inc (NASDAQ:BLMN), Boston Beer Co Inc (NYSE:SAM), and The New York Times Company (NYSE:NYT). This group of stocks’ market valuations resemble CFFN’s market valuation.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $165 million. That figure was $140 million in CFFN’s case. The New York Times Company (NYSE:NYT) is the most popular stock in this table. On the other hand Revlon Inc (NYSE:REV) is the least popular one with only 9 bullish hedge fund positions. Capitol Federal Financial, Inc. (NASDAQ:CFFN) 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 NYT might be a better candidate to consider taking a long position in.

Disclosure: None