Is Crescent Point Energy Corp (CPG) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that cut their entire stakes in the stock during the third quarter. Interestingly, Eric Sprott’s Sprott Asset Management cut the largest stake of all the hedgies studied by Insider Monkey, valued at an estimated $7.2 million in stock, and Brad Dunkley and Blair Levinsky’s Waratah Capital Advisors was right behind this move, as the fund dropped about $6.1 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to Crescent Point Energy Corp (NYSE:CPG). These stocks are ITC Holdings Corp. (NYSE:ITC), Qorvo Inc (NASDAQ:QRVO), Alkermes Plc (NASDAQ:ALKS), and IDEX Corporation (NYSE:IEX). This group of stocks’ market valuations match CPG’s market valuation.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $690 million. That figure was $47 million in CPG’s case. ITC Holdings Corp. (NYSE:ITC) is the most popular stock in this table. On the other hand, IDEX Corporation (NYSE:IEX) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks Crescent Point Energy Corp (NYSE:CPG) holds the same level of popularity as that of IEX. 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.