Is Cogent Communications Holdings Inc. (CCOI) A Good Stock To Buy?

Judging by the fact that Cogent Communications Holdings Inc. (NASDAQ:CCOI) has faced declining sentiment from the aggregate hedge fund industry, it’s easy to see that there exists a select few money managers that slashed their entire stakes by the end of the third quarter. It’s worth mentioning that Michael Pausic’s Foxhaven Asset Management dropped the largest position of all the hedgies tracked by Insider Monkey, worth an estimated $31.7 million in stock. Matthew Knauer and Mina Faltas’s fund, Nokota Management, also dumped its stock, about $8 million worth. These transactions are important to note, as aggregate hedge fund interest was cut by 5 funds by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Cogent Communications Holdings Inc. (NASDAQ:CCOI). We will take a look at Luxoft Holding Inc (NYSE:LXFT), Phibro Animal Health Corp (NASDAQ:PAHC), Stag Industrial Inc (NYSE:STAG), and Seritage Growth Properties (NYSE:SRG). All of these stocks’ market caps are similar to CCOI’s market cap.

As you can see these stocks had an average of 16.25 hedge funds with bullish positions and the average amount invested in these stocks was $175 million. That figure was $248 million in CCOI’s case. Seritage Growth Properties (NYSE:SRG) is the most popular stock in this table. On the other hand Stag Industrial Inc (NYSE:STAG) is the least popular one with only 9 bullish hedge fund positions. Cogent Communications Holdings Inc. (NASDAQ:CCOI) 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 SRG might be a better candidate to consider a long position.