Is Caretrust REIT Inc (CTRE) A Good Stock To Buy?

Judging by the fact that Caretrust REIT Inc (NASDAQ:CTRE) has faced bearish sentiment from the smart money, it’s safe to say that there was a specific group of money managers that slashed their entire stakes heading into Q4. It’s worth mentioning that Jacob Gottlieb’s Visium Asset Management sold off the largest position of all the investors studied by Insider Monkey, comprising about $1.7 million in stock. Gavin Saitowitz and Cisco J. del Valle’s fund, Springbok Capital, also said goodbye to its small position.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Caretrust REIT Inc (NASDAQ:CTRE) but similarly valued. We will take a look at Amphastar Pharmaceuticals Inc (NASDAQ:AMPH), Sonic Automotive Inc (NYSE:SAH), Hi-Crush Partners LP (NYSE:HCLP), and Tile Shop Hldgs, Inc. (NASDAQ:TTS). All of these stocks’ market caps match CTRE’s market cap.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $54 million. That figure was $48 million in CTRE’s case. Tile Shop Hldgs, Inc. (NASDAQ:TTS) is the most popular stock in this table. On the other hand Amphastar Pharmaceuticals Inc (NASDAQ:AMPH) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Caretrust REIT Inc (NASDAQ:CTRE) is only as popular as the least popular stocks. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None