Is Cotiviti Holdings Inc (COTV) A Good Stock To Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually cashed in their positions entirely. Interestingly, James E. Flynn’s Deerfield Management cashed in the largest stake of all the investors tracked by Insider Monkey, comprising about $19 million in stock. George Soros’ Soros Fund Management, also dropped its stock, about $3.4 million worth.

Let’s go over hedge fund activity in other stocks similar to Cotiviti Holdings Inc(NYSE:COTV). These stocks are EnLink Midstream LLC (NYSE:ENLC), Univar Inc (NYSE:UNVR), EnerSys (NYSE:ENS), and Paycom Software Inc (NYSE:PAYC). This group of stocks’ market valuations resemble COTV’s market valuation.

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 $165 million. That figure was $71 million in COTV’s case. Univar Inc (NYSE:UNVR) is the most popular stock in this table. On the other hand EnLink Midstream LLC (NYSE:ENLC) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Cotiviti Holdings Inc(NYSE:COTV) is even less popular than ENLC. 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